The job cuts are made up of 23 compulsory redundancies, 14 voluntary redundancies and two retirements - the majority from the firm's production sector.
Graeme Mawson, the company's financial controller, said: "It's very disappointing that 23 people who would have liked to have stayed with us have had to go.
"We have had to make some very difficult decisions but from where we were a month ago, it's a much brighter situation than we had anticipated."
The company had warned that cost savings to the equivalent of 60 full-time jobs needed to be made when it entered a formal 30-day consultation process at the end of July.
"There has been a significant reduction in shift working together with a reduction in overtime from about six per cent of business hours to two per cent," revealed Mr Mawson.
"We have also brought a number of external contracts in-house which, added together with the job losses, have enabled us to achieve the cost savings we required," added Mr Mawson.
Allan Brothers, which previously employed 240 people, making it Berwick's second biggest employer after Jus-Rol, was established in 1811.
It is the country's oldest joinery company.
It has suffered a large drop in demand for the timber windows and doors it manufactures at its Ord Road factory as the international 'credit crunch' bites hard.
At the same time, bosses say massive rises in electricity costs and the steep increase in distribution expenses caused by the oil price hike have added substantial additional costs onto the business.
"The consultation process has given us another opportunity to have a look at what is happening in the market but we are not seeing any more positive news at the moment," revealed Mr Mawson.
"In fact, if anything, the market looks as bleak now as it did back then.
"We are trying to work out whether it will sort itself out by Christmas, by spring next year or whether it will take the whole of 2009," he explained.
"We know it will turn around eventually because these things are cyclical, so it's a question of how long you can carry the additional costs."
Most of the workers given compulsory redundancy finished last Friday, having served a week's notice.
Mr Mawson was full of praise for the efforts of the firm's shop stewards and three main union representatives during the consultation process.
"Rather than putting up a barrier of resistance, the union representatives have worked with management throughout the negotiations maintaining a constructive dialogue to come to a solution which minimised redundancies," he said.