The largest employer in Sudbury, Delphi Diesel Systems, has confirmed that 176 jobs are to go.
Staff at the Newton Road plant have been informed that in total 91 permanent and 85 temporary roles will be lost of the current 771 workforce.
It is hoped that the majority of these will be made by voluntary redundancy and retirement.
A spokesman for the company admitted he was unaware of the impact the job losses at the factory would have on the community, having played a central role in the town for more than 50 years under different guises.
He was also unable to say whether any new workers would be joining the factory’s award-winning apprenticeship scheme this year.
He said the cuts were part of a trend towards performing skilled tasks at the company’s UK sites and moving less-skilled tasks to other countries.
“Diesel technology is becoming amazingly complex,” he said. “It’s very capital intensive and requires a lot of high level skills.
“A lot of the manufacturing work will be done in the UK where there are excellent skills.
“The plan for Sudbury is for it to be a centre for high precision manufacturing.”
He said there were no plans to close the Sudbury plant but instead some tasks would be performed in other counties where they could be completed “more competitively”.