Convenience grocery producer and distributor Greencore is expected to confirm the closure of its Newtown depot.
The food giant has had a depot on Llanidloes Road for distributing its produce locally for more than 20 years where a handful of staff are employed.
MyNewtown has been told that staff at the depot have been informed some are being made redundant in four weeks time.
Deliveries are made from the depot situated behind the petrol filling station on Llanidloes Road to shops and businesses throughout the area.
The company has been asked to make a statement.