Two jobs are in jeopardy at the government-run sawmill at St John’s.
A consultation is currently underway involving staff at the saw mill and the unions.
Department of Environment, Food and Agriculture finance director Antony Boyd said there was ‘potential’ for redundancies, but no final decision had yet been made.
‘The department is currently consulting with the workforce at the saw mill and the unions,’ he said.
‘Some staff are at risk but no decision has been made.’
He said a ‘change in processes’ was to blame adding: ‘Rather than running all the operations at the sawmill concurrently it is now tending to be done in batches so fewer people and less supervision are required.’
Mr Boyd said he was unable to put a precise time limit on the consultation period, but said a decision on exactly who might be affected would be made after that.
‘We have asked staff about voluntary redundancy and we will try every other avenue we can to avoid any compulsory redundancies,’ he added.