Up to 400 jobs are set to be cut at Vauxhall’s Ellesmere Port plant by Christmas.
A quarter of the Merseyside factory’s staff will be axed through voluntary redundancies in a move by the car manufacturer’s owners PSA.
The French firm took over Vauxhall in August but have taken the decision amid the ongoing uncertainty about the UK’s plans to leave the European Union.
Negotiations between the Government and their Brussels counterparts are currently deadlocked with the prospect of a ‘no deal’ Brexit a possibility.
“Facing challenging European market conditions and a declining passenger car market, Vauxhall needs to adjust production volumes at its Ellesmere Port production facility to the current level of demand and to improve its performance, in order to protect its future,” a PSA spokesman told Reuters.
“The 400 job cuts – which amount to about a quarter of the facility’s staff – would be carried out via a voluntary redundancy plan.
“This and a move towards a single-shift operation will be discussed with employees’ representatives over a 45-day period.”
The Unite union, which represents Vauxhall workers, have declined to comment on the situation until meeting with shop stewards on Monday.
Prime Minister Theresa May sought assurances from PSA’s chief executive Carlos Tavares on the future of Vauxhall’s sites in Ellesmere Port and Luton in February.
But Mr Tavares admitted last month that the lack fo clarity over Brexit prevented the car giant, who also make Peugeot and Citroen, devising a definitive strategy.