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An aerospace company in central Newfoundland is shedding dozens of jobs as it copes with slumping demand in the global aviation industry.

Although Gander-based Heli-One, a subsidiary of CHC Helicopter Corp., had brokered a deal to share jobs in order to avoid layoffs, it told employees on Wednesday afternoon that it must drop 120 employees.

Only about 40 employees will be left at the plant, which makes parts for helicopters. A worker told CBC News the layoffs start next week and the process could take a couple of weeks to complete.

Canadian Auto Workers representative Bill King said Heli-One’s problems are part and parcel of the downturn in the aerospace industry.

“A vast majority of the work with CHC is Sikorsky, and Sikorsky, of course, is running apparently on a bit of hard times,” he said, referring to the U.S. manufacturer.

The laid-off workers include about 100 unionized employees.

Plant manager Troy Freeborn said that with manufacturers selling fewer aircraft, orders for parts have dropped.

Freeborn said the situation is not permanent, and that the company is looking for other markets. He said it could start rehiring as early as September.

The Newfoundland and Labrador government invested almost $10 million in the company, formerly known as CHC Composites, when it was launched by late helicopter magnate Craig Dobbin in the 1990s. It was sold to a U.S. company last year.