Havelock Europa in Kirkcaldy will be making redundancies over the next month.
After the company lost a contract with Lloyds, the share value dropped by nearly £2 million. Lloyds was Havelock's biggest single customer and were worth £14 million to Havelock in 2015.
David Ritchie, Havelock Europa's chief executive, said:
''Any decision to reduce jobs is an incredibly difficult one to take but we must respond quickly and decisively to this loss of income for the long-term good of the business and the wider workforce.
We will, of course, do everything we can to support those colleagues affected over the coming weeks.''
Responding to the announcement, Mid Scotland and Fife MSP Claire Baker said:
''The news of up to 50 jobs being lost at Havelock Europa is a further blow to its workforce and the wider Fife economy.
We all understood that the decision taken by Lloyds to scale back their order with Havelock would have serious implications for the company and raised fears that further jobs would be lost.
That these fears have come to fruition is a huge disappointment and underlines the difficulty facing many companies in Fife at the present time.
It is therefore vital that we all work together to ensure those affected by job losses have all the support they need in finding new employment.
In the meantime I will continue to speak and work with the company as they plan to diversify their business to ensure a sustainable future for their business and its remaining workforce.''
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