A total of 250 jobs are to be axed at truck maker Leyland with its Lancashire factory facing an extended shutdown over Christmas due to a "severe decline" in demand, the firm announced.
Workers at the company's only remaining UK truck plant in Leyland have now entered into a 90-day consultation process over the moves.
Around 1,300 workers are employed at the site, which will close down for two weeks over Christmas instead of the normal seven days.
A company spokesman blamed the cuts on a severe decline in demand for heavy trucks across Europe.
The company, owned by American giant Paccar, builds Daf trucks at the factory in Leyland which has been producing trucks for 116 years.
There has been an estimated 40% slump in sales of all heavy trucks across Europe this year.
A company spokesman said it was hoped a company in nearby Blackburn which makes buses will be able to take on some of those affected by the proposed job cuts.
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