A company that makes wood veneers is laying off 54 workers – about a third of the work force – from its Newport mill.
Columbia Forest Products cites declining sales in the current tough economy as the cause of the layoffs.
Officials say the job losses are the first widespread layoffs in the 42-year history of the plant.
They hit hard in the Newport area, which typically has an unemployment rate a full percentage point higher than the statewide figure. The regional jobless rate was 6.2 percent in October.
Officials say one sign of hope is that the retailer Tractor Supply is to open a new store in the area in the coming months, bringing 30 to 40 jobs.