175 job agency workers have lost their jobs at the Caterpillar factory in Leicestershire according to union Unite.
Caterpillar, which makes machinery for the construction industry and has an assembly plant in Desford, blamed economic problems in the Eurozone and the United States for the job losses.
A spokesman from the company says a voluntary redundancy program has been launched.
"These actions have been shared with our employees and agencies that provide workers for our operations. In the near term, we expect these actions will decrease our workforce at Caterpillar Desford, although we do not have specific figures to share at this time." - Caterpillar Spokesperson
The news comes just two years after Caterpillar created 300 jobs in response to an increase in global demand.