Site owners Welsh Slate has confirmed that it has been forced to seek up to 50 redundancies, affecting the workforce at both its Penrhyn and Ffestiniog sites.

Voluntary redundancies will be sought initially, and it is hoped that compulsory job losses can be avoided.

Managing director Alan Smith has pointed the finger at the global credit crunch; he said: "The global economic downturn has caused a slow down in the construction industry and the company must respond to this change in market conditions to protect the long-term future of Welsh Slate and its employees.

"We will do everything possible to ensure that the necessary reduction in staffing numbers can be achieved through a voluntary redundancy programme and offer whatever support and assistance we can to staff during this difficult period."

The announcement has been met with dismay by workers at Penrhyn Quarry; Colin Williams, the Transport and General Workers Union branch secretary onsite, said: "Everybody is gutted, it's just one thing after another.

"It's down to the economic climate; sales just stopped in May and this has carried on."

The news has also caused concern in the local community, with Tregarth and Mynydd Llandegai's Gwynedd councillor, Gwen Griffith, branding it a "very bad day for the area".

She added: "This has hit us like a bolt.

"40 jobs lost in Bethesda and Blaenau is the equivalent of losing 400 jobs in Cardiff or Swansea."