Forty jobs are to go at a Slaithwaite textile firm.
Spectrum Yarns, which has been based in the village since 1986, has confirmed it is to axe about a quarter of its workforce.
And managing director Richard Brown said the sad news was a reflection of continued Government interference in trade.
He said recent announcements by the Chancellor George Osborne and campaigns such as the Minimum Wage legislation were having a knock-on effect on labour-intensive businesses.
Mr Brown said: “I would estimate that labour costs in our fine-end spinning accounts for about 60% of the costs and we cannot continue as we are.
“We work on a 10-week order book and at the moment we are looking at three weeks of orders.
“I have been canvassing our customers and most say it is going to be a difficult year.
“We have been losing money in this section for some time and there is no respite ahead.
“We don’t really have any options”
Spectrum Yarns supplies quality materials to customers all over the UK and some is also exported.
The firm will continue with its spinning operations but Mr Brown said the fine-end section would effectively be closed.
“We have had to tell our employees there is no alternative.
“I am 62 and a lot of these people have been with me for a long time. The vast majority are company people and it is a sad day.
“We have a workforce of 160 and about 40 are going to have to go. We are certainly not shutting down but it is a sad day for me and for an awful lot of people.
“We have been very successful through the 1980s and 1990s and I feel not only a responsibility to my employees but also to our customers through the UK who are also struggling.
“Every time the Government interferes in our business it causes problems”.
One of Spectrum’s projects in the past has been to produce specialist wear for golfers.
Bespoke cresting technology allowed businesses and organisations to put their own individual mark on their products.
Spectrum subsidiary Glenbrae has been marketed mainly at the golf wear sector and has received official endorsements from figures such as Ryder Cup captains Sam Torrance and Mark James.