An employee is escorted out of the company in east Vancouver where a shooter killed one man Friday afternoon. (CBC)

A disgruntled ex-employee walked into his former company's Christmas party in east Vancouver on Friday and opened fire, killing one man, police said.

The 61-year-old gunman was taken into custody at around 6 p.m., about two hours after the shooting took place, after talking on the phone with police negotiators, Vancouver police Const. Tim Fanning said.

"He gave himself up to police. Once we got inside, we did in fact find that one man had been shot dead," Fanning said.

"There were no hostages. He did let everybody else go. He shot just one man."

Fanning said the shooter would not be identified until formal charges are laid against him.

Vancouver police Const. Tim Fanning says a 61-year-old man gave himself up to police after talking on the phone with negotiators. (CBC)

"He did work at the company and was recently let go," Fanning said.

Some witnesses told CBC News the gunman was fired this week.

The victim's identity has not been confirmed, either.

Police were called to TallGrass Distribution Ltd., which, according to its website, sells supplies natural-health products, at around 4 p.m.

Dozens of officers arrived, cordoning off three city blocks near East 5th Avenue and Quebec Street.

After the incident, investigators took statements from at least a dozen witnesses at a police station Friday night.