Griffin Coal has axed 17 workers from its Collie coal operation less than a month after it claimed it was not looking at reducing staff numbers.
The Indian-owned company said the job cuts were made in an attempt to stem losses of up to $10 million a month.
Griffin's general manager employee and industrial relations, Chris Godfrey, said the cutback represented four per cent of the company's workforce.
“Griffin does not anticipate further reduction in workforce numbers,” he said.
Last month news emerged Griffin could lay off up to 30 per cent of its office workforce, but at the time Godfrey said talk of a cutback was a “total rumour”.
“We are not laying anyone off at this stage,” he said.
Griffin is struggling with debt and marginal profits, and has previously announced moves to “maximise efficiencies” and reduce costs.