Atlas Copco has cut more than 100 workers from its major plant in Sweden.
According to the mining machinery manufacturer it will cut 163 workers from its Orebro facility in Sweden as a response to weak global demand.
"The market for mining equipment continues to be weak, and we have to adjust capacity accordingly," head of the Mining and Rock Excavation Technique section Johan Halling said.
"It’s very unfortunate that some employees are directly affected, but we will do our best to support them in this difficult situation."
The company said 110 blue collar workers and 53 office workers were let go from a staff of 1700.
Orebor is the centre for Atlas' global distribution network.
Fellow drill manufacturer Boart Longyear has also seen a tough year due to downturn.
It has suffered another tough year, and seen a 35 per cent fall in revenue year on year, according to its latest first half results.
It recorded revenues of just US$719 million in the first half of 2013, down from US$1.099 billion the same last year.
The drilling contractor and manufacturer reported a 95 per cent fall in EBIT/Operating profit, while at the same time recording a 51 per cent increase in its net debt levels.
Boart has also reduced its workforce, cutting its headcount from 11 440 down to only 7147 in the last twelve months.