Canadian timber and paper giant Abitibi-Consolidated Inc is to close five Quebec sawmills and temporarily shut 22 others.
About 5,700 workers are affected, 700 of whom in Quebec will lose their jobs indefinitely. The other mills will close for up to a month.
The company is taking the action due to a decline in softwood shipments to the US following the imposition of lumber tariffs by the US government in May.
Rival companies Weyerhaeuser Canada Ltd and Canfor Corporation are monitoring the market but have so far decided against cutbacks in production.
