Five redundancies are being made at Braddan-based agricultural supplier Isle of Man Farmers.
The jobs are going in the workshop and spares department.
Manager Jim Duncan says a sharp decline in the sale of machinery is at the heart of the problem.
It will reduce the work force at the firm, based at the bottom of Richmond Hill, from 12 to 7.
Mr Duncan says he cannot comment further until he has met with the committee that run the concern, in a weeks time.
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