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More than 100 jobs are at risk at the Aston Martin St Athan plant in the Vale of Glamorgan, BBC Wales has been told.
The company has blamed losses on US tariffs imposed by President Donald Trump and weak demand from China.
Aston Martin, which started production in south Wales in 2019, said its proposals remain under consultation but no final figures on jobs have been confirmed.
The Unite union described the situation as “devastating” and said it would begin a consultation with the company to mitigate redundancies.
Aston Martin said it would take steps to strengthen its position in response to continued challenges in the global macro-economic environment.
It said the actions it was taking “may affect contractor, fixed-term and permanent roles”.
Staff production jobs make up the majority of roles being consulted on as well as a number of contractor positions, BBC Wales was told.
Andrew Pearson, Unite regional officer, said the news was “devastating” for the workforce at Aston Martin.
Aston Martin has seen its shares tumble during the year and last month said it faced losing £110m due to the “global macroeconomic environment”.
The current round of potential job cuts follow a decision by the company to cut 170 jobs at St Athan in February.
BBC News
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