More than 150 people are losing their jobs in Perry County.
American Woodmark is shutting down leaving those who work there without jobs after the new year.
Officials at American Woodmark's corporate office confirmed the shutdown.
They say the reason for the shutdown is because of the continuing housing slump. They are also closing a facility in Hardy County, West Virginia.
Several employees contacted WYMT saying American Woodmark held a meeting on Monday to announce the layoffs.
City and county officials say the layoffs are a tragedy.
"This is of great concern to us because there is not any other industry here to employ them, and they will have to seek welfare some way," said City of Hazard Mayor Nan Gorman.
That means around 150 more people will be searching for jobs in Perry County at time when jobs are scarce.
"It's hard, it's a tough job market. It's always tough in eastern Kentucky. We have some of the highest unemployment rates in the nation," said Director of Eastern Kentucky Concentrated Employment Program Jeff Whitehead.
But, Whitehead says that there are employers hiring, and some people are getting jobs.
For more information about EKCEP and the programs they offer to help people get jobs, go to www.ekcep.com.