GippsAreo, the Victorian aircraft manufacturer based in Traralgon, is to cut 40 jobs.
As the ABC reports, the announcement comes despite the fact that the company has received millions of dollars in State and Federal Government funding to upgrade its facilities.
John Parker of the Gippsland Trades and Labour Council was disappointed by the sackings.
"State and Federal Governments would be disappointed as well," he said. "They've done everything that they could for this company."
GippsAreo is partly owned by an Indian aerospace firm.
Image: Australian Aviation