Baker Hughes has told workers that it is proposing the closure of its base in the Bridge of Don, with around 100 jobs at risk.
The oil services company told staff that the need to reduce costs meant it may have to cease the manufacture of certain oil field services products at the Woodside Road base.
"We are facing unprecedented market conditions, requiring us to reduce costs and restructure parts of our business," read a statement, which noted that consultation has begun with affected workers.
"These proposals are always difficult, and we make them with the utmost sensitivity to how they affect our employees, customers, and communities.
"The consultation will proceed for as long as is reasonable necessary, in an effort to seek an agreement, before a final decision is made," it added.
Local MP Richard Thomson described the proposals as a "devastating blow" for the employees affected.
"Along with my MSP colleague Jackie Dunbar, I will be seeking an urgent meeting with senior management to discuss their announcement", he added.
Baker Hughes concluded an “incredibly challenging” 2020 financial year with pre-tax losses of $15.2bn.
While fourth quarter results had improved, a $11bn impairment charge in the first half of last year weighed heavy on results, in the face of “navigating the impacts of the global pandemic and industry downturn”.
The GE Group company has several sites across Scotland, and opened a Centre of Excellence facility in Montrose back in June 2019.
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