The Falkirk workforce of bus builder Alexander Dennis Limited will be reduced by 160 even after jobs are transferred from the firm's Guildford factory.
The company confirmed on Thursday it had begun consultation with employees on plans to cut up to 650 positions in the UK.
ADL said it plans to transfer chassis production from Guildford to Falkirk factory, affecting around 200 employees in Essex. Engineering, Test & Development and Aftermarket will continue to be based at Guildford.
But it claimed a fall in demand for new vehicles would result in the loss of 90 production jobs in Scarborough and a net reduction of 160 manufacturing roles in Falkirk. Another 200 roles will go in support functions across all UK sites. ADL is offering voluntary redundancy packages to reduce the number of compulsory job losses.
The firm's Canadian parent company NFI Group, which bought ADL for £320 million in May last year, said it was restructuring along the same lines as 'vertical integration' which achieved savings at its North American businesses.
ADL president & managing director Paul Davies said: “We have no choice but to implement these tough decisions to protect the company’s future health. We remain confident that the situation will improve in time, and we are well placed to take advantage when that happens, but right now we have to adjust to our new economic reality.
“We continue to call upon the UK and Scottish Governments to urgently introduce meaningful support to facilitate demand for new buses and coaches, not only to prevent further damage to UK bus and coach manufacturing that could threaten additional production sites, but to help build back better with a green recovery that delivers cleaner air for our towns and cities."
