The retrenchment of 24 employees from the Devonport mill, in the state's north-west, was announced Thursday by AWM chief operating officer Geoff Parker.
He said the move, although unpleasant and regrettable, was necessary to ensure the long-term viability of the company and preserve the remaining 200 jobs at the site.
"It is rare that we let people go," Parker said.
"In nine years we have only ever done it once and that was in a very minor way.
"Most of the circumstances that are pushing it are beyond the company's control."
One of the largest textile companies remaining in Australia and a major employer in the region, the mill produces branded towels for Dickies, Dri-Glo and Esprit.
Parker said it was facing increasing pressure from overseas imports, which had led to many retailers importing from offshore.
Tariff protection against imported goods will reduce by nearly 30 per cent early next year.
Mill management is also awaiting the passage of strategic investment program legislation through federal parliament, which will provide incentives to local industry.
Textile, Clothing and Footwear Union state organiser Doug Shirkey said the last of the workers to be retrenched were told last night.
"It's the same old, same old for the textile industry," he said.
"It is difficult to combat Chinese prices, particularly in regards to labour."
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