Rock of Ages in Barre is laying off 25 of its 78 granite quarry workers.
The company says a drop in demand for granite headstones is causing a decline in the industry.
Paul Hutchins is vice president of administration at the company. He says the 25 workers are currently on a seasonal layoff because of the winter weather.
They were notified of the permanent layoffs on Monday.
Union officials say the layoffs were unexpected.
The union and company officials will be meeting with the laid-off workers next week to discuss benefits, pensions and other programs.