Talks are going on between unions and management at Falmouth Docks over fears it could lose a quarter of its workforce.
The dockyard relies heavily on contracts from the Ministry of Defence but says it won't get any more Government work until 2015.
The union says the workforce is devastated by the news. It's the first time the dockyard has faced a jobs crisis in the past 20 years.
Our Cornwall correspondent Steve Hardy reports:
Peter Child from A&P Falmouth said a drop in orders meant they would have to lose workers:
A consultation is underway after it was announced that 80 jobs are under threat at docks in Cornwall.
A & P Falmouth employs more than 300 people but says it needs to make the cuts as it restructures the ship repair business.
The 30 day consultation period with staff and unions has begun but management say the job losses are unavoidable.