Scanwood Canada Ltd., a Dartmouth furniture manufacturer, is laying off 35 workers after receiving a $4.75-million government loan.
The company, which makes products for Swedish retailer Ikea, announced the jobs cuts to staff on Thursday, the Chronicle Herald reported.
Bo Thorn, Scanwood executive chairman, said the company is spending "millions of dollars" on a packing line that will require fewer workers.
"It's automating a process that requires less people to do the same thing," he told the newspaper.
The layoffs take effect in September.
Thorn said the company has been losing money for more than a year.
In March, the Nova Scotia government gave Scanwood a $4.75-million loan, saying it would help the company become more innovative and efficient, and maintain 280 jobs.
The money came from the cabinet-controlled Industrial Expansion Fund.
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