The cuts at Dumfries-based Mostell, which was established in 2000, have been made following the loss of a major contract, according to owner Browns Food Group.
Three staff had accepted an invitation to work for the firm at another location.
The news comes just weeks after Browns announced that 10% of the workforce at its Belcher Foods plant in Prestwick was being laid off following a modernisation programme.
In a letter issued to staff by company secretary Susan Godfrey spelled out the reasons for the closure.
Prices halved
“It is with regret that the directors have made the decision to close down the Locharbriggs sausage plant,” she said.
“It has been necessary for Mostell Ltd to review its operations in view of the loss of the Triton contract. As you will be aware, this contract contributed to in excess of 50% of the turnover for the plant.
“In addition to this, the average selling price for sausage has halved and the commercial implications resulting from this have had to be considered.”
It is not yet clear whether Mostell’s sales office in Hertford will continue to have a role to play within the Browns structure.
The 12-acre Locharbriggs site is also home to a 5,500-tonne cold store and a logistics division.