JNL, one of Gisborne’s biggest employers, says 100 jobs will be affected by job cuts.

It's a blow to a region that's already struggling with high scale unemployment.

E Tū spokesperson Norm Mouritsen shares the worries of the employees.

“It's not good at all. We are talking about 97 workers, 97 families a community. Very mixed emotions I guess we are really looking at a point, what now? What do I do with my life now?”

JNL general manager, Dave Hilliard says due to the decline in demand for plywood from the Japanese housing market is the reason for the restructure.

“The Japanese market is very competitive and declining so we are competing over there with all sorts of other countries.”

The company says out of the 100 workers affected, they have accepted 60 voluntary severance.

Hilliard also adds that some will be redeployed; many jobs are on the line.

“Between 20 to 30 who will be surplus to our needs immediately and they will be paid out their full redundancies entitlements.”

Local MP for Ikaroa-Rāwhiti, Meka Whaitiri is working with JNL to manage the problem  

“As much as the news is it’s a sad piece of news is minimising job losses for those affected workers.”

Regional Development Minister, Shane Jones says he has a plan to support the East Coast region.

"Ā te 23 haere ake ana mātou ko Tūranganui-a-Kiwa ki te whakaari i te pūtea hōu me ngā pūngawerewere kei roto kei waho kei raro, kei runga i tēnā pūtea, kia kaua rawa e rawekengia nā hei kona ka puta ahau i ētahi whakaaro me pēhea rānei he rātonga e whakawhiwhingia atu ki a rātou.”

In coming weeks, the company will reveal more details to workers as to how many jobs will be cut.