Mosgiel is again being hit by job losses, with laminate manufacturer O'Brien Group set to lay off up to 10 workers before Christmas.
All questions to O'Brien Group were referred to its parent company, Laminex Group, which is owned by Fletcher Building.
Laminex Group general manager Robert Gibbes, of Auckland, confirmed management met with staff at the O'Brien Group head office in Mosgiel on Thursday to discuss job redundancies
Under the proposal, up to 10 jobs would go at the Mosgiel head office, the main manufacturing facility for the company, as the company tried to "stay relative with the market".
With the company specialising in bench tops and vanity units, a downturn in the housing market had left the company with little choice but to review staffing numbers.
The business was "significantly down" compared with previous years, he said.
Another 10 workers could be made redundant at one of O'Brien Group's seven other sites, but Mr Gibbes declined to say where those job cuts would be made.
More than half of the company's 180 employees were based in Otago, he said.
Mr Gibbes said he was aware Mosgiel had been hit hard by recent redundancy announcements, notably Fisher and Paykel, but said the cuts had "been forced upon us".
"This is no reflection on our people."
The Otago Daily Times understands the company will meet staff on Tuesday to announce its final decision, with redundancies set to begin in the week leading up to Christmas.
Despite the layoffs, Mr Gibbes said the company remained loyal to the area and would not be moving.