Hitachi have announced 250 job losses at their rail factory at Newton Aycliffe, County Durham.
The plant, which opened in 2015, employs 850 people. The firm said their order book "was not enough to sustain the workforce we have today."
The announcement will be followed by a 45-day consultation process with employees.
In a statement, the Japanese company said it was making the factory "more flexible, agile and globally competitive."
Hitachi will also make a single investment of £8.5 million in welding and painting facilities.
A spokesperson said the investment would help the Durham plant secure future contracts. Hitachi will finish building trains for the East Coast Mainline fleet in the coming months.
Ross Nagle, Hitachi's chief operating officer, said:
Paul Howell, the new MP for Sedgefield, called the news "unwelcome", but said he'd been "personally assured that Hitachi Rail remains completely committed to Newton Aycliffe, the North East and the UK."
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Neighbouring MP Alex Cunningham called the job losses "devastating" -
In September there were reports Hitachi had failed to secure a £500m contract to build the next generation of trains for the Tyne and Wear Metro.
In a statement, Nexus said:
Two months later the Japanese manufacturer was awarded a £350m contract to build 23 intercity trains for Avanti West Coast.
Ben Houchen, Tees Valley mayor, said:
James Ramsbotham, chief executive of the North-East chamber of commerce, said Hitachi remained "a great manufacturing plant" and stressed the importance of the plant winning new contracts.