The company, the biggest employer in Llangollen near Wrexham, has launched a 30-day consultation today (17 February), as it looks to reduce its 95-strong headcount by around 30 after losing its biggest contract, according to the union.

Unite regional officer Tony Brady said “the business has been struggling for some time”, with employees already agreeing a 7.3% pay cut in November.

Brady is now in talks with Welsh government deputy minister for skills and technology and member for Clwyd South, Ken Skates.

Brady said: “The news that up to 30 jobs could be lost is devastating for the workforce at the town’s biggest employer and also for their families. This area can’t afford to lose these jobs and it is a hammer blow to the local economy.

“The company will lose its biggest contract in April and there is a big question mark over whether the company will be able to afford the enhanced redundancy terms for the workers that have been agreed with Unite.

“However, Unite will be campaigning hard to save these jobs and will be working with all interested parties to support employment at Dobson & Crowther.”

The company, which prints around 500m envelopes a year for the direct mail industry, confirmed that it had lost a “substantial contract” and that the resulting loss of revenue meant it was unable “to sustain current workforce numbers”.

Dobson & Crowther managing director Paul Holden said: “We explained to the union that whilst we are not yet clear as to the full extent of any headcount reductions, we would notify them as soon as we were in a position to table formal proposals.

“We fully intend to consult the union and other employee representatives in the proper manner in accordance with our legal obligations."

Holden said that despite the lost contract, the underlying business was robust and remained strong enough to support the majority of the workforce.

“We are pleased to note that the union will cooperate with a view to reaching agreement over the necessary changes – in contrast to earlier indications,” Holden added. “It is essential we work together to safeguard the interests of the business going forward.

“We fully appreciate that this will be a challenging and uncertain period for all our employees and their families.

"We hope, however, that with the support and cooperation of the union and the workforce as a whole we will secure the future of the Dobson & Crowther business in Llangollen, which has been our home since 1946," he said.