Hundreds of people with disabilities involved in a government-subsidized work program have been laid off, as the businesses that employed them were forced to shut their doors due to financial difficulties, sources close to the matter said Tuesday.

Over 280 employees at seven businesses run by two entities in Kurashiki, Okayama Prefecture and Takamatsu, Kagawa Prefecture, were let go in July, while another company operating similar programs in central and eastern Japan is preparing to shut down later this month, possibly affecting around 100 workers, the sources said.

The operations, including businesses in the fruit- and produce-packing industries and direct mailing services, receive state subsidies based on the number of disabled workers accepted.