The Addictions Research Centre in Montague, P.E.I. is closing.
CBC learned that the federal research centre will close in April of 2014.
About 20 employees with the centre met with their director on Wednesday.
MP Lawrence MacAulay said it's a "devastating" blow to his riding.
"It's unbelievable really. I expected difficulty when Harper formed the majority government, but this is the only addiction research centre in Canada," he said.
"I just think of the people who work there and go home tonight, getting supper for their family and looking at a bill on the counter. It's tough boy, it's tough.Tough in Toronto, much worse in Montague," said the Cardigan MP.
The facility was established in 1999 to help substance abusers in the federal prison system.
Correctional Services said the centre's closure will save taxpayers $1.6 million.
Wednesday marked the fourth wave of federal job cuts. Hundreds of federal workers from several government departments were affected.
Twenty-eight employees at the Service Canada Claims Processing Centre in Montague also received notices today.
Another 20 people in Charlottetown and Summerside are expected to receive notices tomorrow.
Island workers at Public Works, Correctional Services and the Canada Revenue Agency were also affected.
In its March budget, the federal government said 19,200 public service sector positions would be cut over the next three years in an effort to find government savings of $5.2 billion.