Following rumours circulating around Forfar over the past week, it has been confirmed that 95 employees at the former family-run Joseph Mitchell (Letham) Limited operation are facing redundancy as a result of a decision to relocate the firm's cutting division to the West Midlands.

The announcement was made to the workforce last week and it is expected those affected will be made redundant within 30 days.

A spokesperson for the firm explained that the decision to relocate the cutting division was made in the face of difficult and challenging times.

"We have to make difficult and sometimes unpopular decisions in order to optimise our efficiency.

"A decision has been made to concentrate on primary production at the Letham factory and transfer the cutting division to the West Midlands and that will mean redundancy for 95 employees."

The move will significantly reduce the workforce at the poultry processing plant from the current number of around 240.

The news comes hard on the heels of a major jolt for the local building industry, with the folding of Forfar firm Tasker Building Services putting over thirty people out of work.

Commenting on this latest news, North Tayside MSP John Swinney said it will result in real anxiety for those facing redundancy.

"We are going through very tough economic times, and it is important that we try to ensure we maintain high levels of employment through these difficulties.

"We must continue to do everything we can to ensure that those affected by this decision are properly supported in their quest to find alternative employment."

Angus MP Mike Weir described the latest local jobs blow as "terrible news not just for the workers and their families, but for the whole local economy."

"This is a long established business and an important part of the local economy.

"Clearly, despite talk of 'green shoots', the recession is continuing to bite and unemployment is rising.

"Cost pressures from supermarkets are hitting all areas of food production. The transfer of work to the south is a worrying development and perhaps shows the folly of centralised food distribution systems that work against local food production and lead to increased food miles.

"All levels of government must work together to help local business.

"We need to maintain investment in both the local and Scottish economies.

"The Scottish government is bringing forward new measures to help business building on their action in slashing business rates.

"The intention of the UK government to cut spending is, however, a worrying sign that could lead to a further deterioration in the local economy.

"Despite assurances from the UK government local businesses still report difficulties with bank credit and that issue must be addressed. We need to ensure that locally based businesses are helped to get through this recession and help us to expand for the future."

As the news of the redundancies at the poultry processing plant sinks in, fingers will be crossed that there is no more bad news on the horizon, and the remaining hundred and forty or so employees have a jobs future at the Letham site.

After all, it is a firm that has had a very long association with the village - one that spanned four generations of the Mitchell family until the acquisition by the 2 Sisters Food Group Limited in 2007.