In a small town like Jonesville, word travels fast-- especially when it's word that the town's largest employer, SKD Automotive, is eliminating more than 300 jobs. That's more than 10 percent of Jonesville's total population of 2,337.

We're all scared," says Maggie Houghtby. "We didn't expect it. We expected SKD to be here a long time."

In documents obtained by News 10, SKD says come January 10, 2009, hundreds of jobs at the automotive supplier in Jonesville will be slashed.

"It will have a dramatic impact on Jonesville and on the entire region," says Jonesville Village Manager Adam Smith.

SKD representatives didn't return our calls Monday; employees were too scared to talk on camera because they aren't sure if their jobs are on the chopping block or not and don't want to jeopardize any chances.

Smith says this is the ailing auto industry hitting home in the worst way.

"This will be very difficult to deal with," he says. He says SKD has a taxable value of $7.7 million, and without its revenue coming into Jonesville, they are scrambling to re-arrange the budget.

When asked if this announcement would result in layoffs at the local government level, Smith could not rule it out.

The parking lot at SKD will be virtually empty come January; as of the beginning of 2008, Smith says the company had 435 employees. He says some have already been cut since then, and now, with 302 more being eliminated, the company will be a virutal shell-- and it won't take long until the rest of the city starts to feel the effects.

"We see it affecting every business in the county, the county is so depleted with businesses closing its doors," Houghtby says.

Houghtby works across the street from SKD at an eye doctor's office. She says more than 15 percent of their patients come from SKD, and now, what will they do without that business?

"There's a possibility of layoffs here if we lose considerable amount of patients," she says. Houghtby herself knows many people who will likely be losing their jobs at SKD.

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U.S. Congressman-Elect Mark Schauer, (D) Michigan, released to News 10 a statement. In part, it read:

"I know times are tough, but as a member of Congress I'll do everything in my power to make sure Michigan workers and businesses survive this crisis and emerge able to compete in the changing economy."

U.S. Congressman Tim Walberg, (R) Michigan, released this statement. In whole, it read:

"Congressman Walberg is deeply sadden (sic) by the recent job losses in Jonesville. I think your question could be better answered by state leaders like Gov. Granholm and Senator Schauer who have created Michigan's current economic environment."