More than 100 employees of Technicolor in Mirabel were told Monday their services are no longer needed.
The film processing plant was built in Mirabel ten years ago with the help of taxpayer money.
With the changes in technology over the past decade, workers said they knew their jobs were on the line.
"We knew in the long run we would have to close this plant, that's - there's no doubt about that," union representative Jean Lussier told CTV Montreal. "The first of the job losses came just last week."
Jean-Luc Riopel of the Mirabel Economic Development Commission said the company never talked about safeguarding jobs, but it was thought most of the workers would be able to keep their positions for a few more years.
"But today, it's the end," he said. "I mean it's quite a bit - a surprise."
Built ten years ago, the plant was considered to be the biggest, most advanced film lab in the world.
Its function was straightforward: to process and distribute hollywood films to theatres across North America.
Technicolor's president at the time said the film lab would keep up to date with digital production.
"It will contain many high tech capabilities and new technologies, both new to Canada and also new to the world because it will be the first time these technologies are used anywhere," said Walter Schonfeld, Technicolor's former president.
But in just ten years the lab had become obsolete - digital production having largely replaced film.
The Parti Quebecois government at the time offered tax incentives for the plant to be built and those incentives lasted until this year.
The job loses will mean a loss to the local economy of between 7-8 million dollars.
The unionized workers could receive as much as 26 weeks of pay depending on their years of service.
Technicolor has other labs in the Montreal area but the work is different from the work that was done in Mirabel so those who've lost their jobs may not be able to relocate.
