Staff morale at one of Mid Wales' biggest employers was described as “very low” on Thursday after they were told about looming job losses.

Control Techniques said it is "fully committed" to remaining in Newtown for the long-term despite telling staff that almost 100 people could lose their jobs following a consultation process in response to changing market conditions.

The company, which is part of Nidec – the world’s largest manufacturer of motors used to power hard-disk drives – employs around 350 staff in Newtown.

A staff member said: “It’s pretty bad news but it's not all as it seems. We were all gathered to be told 98 jobs will be lost across various departments.

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“Just after the first lockdown the business grew in all areas of the globe, so a lot of staff were hired to cover that demand. In the meantime, we opened factories in Mexico and India to help produce for the Americas and Asian markets.

“The Newtown site predominantly produces products for the European market. Surplus stock has been produced over the last few years during and after Covid.

“The market has now settled so demand is back to pre-pandemic level and the Mexico and India sites along with ours seems less busy. Hence the reduction in staff.

“The company isn't struggling; just reset to a level which we were at three years ago. It’s pretty gutting for the people who will go. Nobody has been told they've lost their job yet. Everyone will go through a consultation process.

“There’s not a lot of opportunities around town in terms of jobs."

Powys County Council also reacted to proposals made by the Newtown-founded electronics firm to right-size their operational capacity.

Cllr David Selby, Powys County Council’s Cabinet Member for a More Prosperous Powys, said: “We are naturally concerned about the announcement and the potential impact on individuals and the wider community.

“Nidec Control Techniques is an important asset to Powys and its economy.  We are monitoring the situation and are working closely with our partners to support those who will be affected by these proposals.”

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Montgomeryshire politicians Craig Williams MP and Russell George MS met with Nidec officials on Friday (January 19) to discuss how they can support affected staff and the company "through this painful process".

Mr Williams said: "I am working with the Department for Work and Pensions - DWP in delivering a Taskforce, so we can ensure that vital support is rolled out to all those who are affected at pace.

"From our discussions, it is clear that this has been an extremely difficult decision for the company to take. Control Techniques has been one of Montgomeryshire’s biggest and most loyal employers for many years and remains a huge contributor to our local economy. I was reassured therefore that Nidec remains fully committed to remaining in Newtown for the long-term.

"I will be working closely with both Nidec and the UK Government to ensure that all affected staff and their families are able to access all of the necessary support they require as quickly as possible."

Staff have been told that a consultation process will soon begin and that the company will make every effort to achieve any possible job losses through voluntary redundancies, “though it is important that critical skills are retained”.