Shipbuilding giant Cammell Laird is to axe around 180 jobs after it reported a downturn in work.
The famous Birkenhead firm announced in a statement on Friday it has begun a consultation period with affected staff, and that 178 posts will be removed.
A "number" of senior management team have already departed the business, the firm added.
Cammell Laird said it came after a full review of the business revealed it had endured a downturn of workload - and it is employing "too many people".
A statement on Friday said the business needs to "modernise and develop processes, procedures, and governance, which will make the business fit for the future", adding: "Currently the business is inefficient and uncompetitive."
It said: "The new management team is absolutely committed to bringing about the essential changes that will ensure Cammell Laird is able to meet the demand of current and future customers.
"By conducting this process now, we will secure the employment of the remaining workforce. Equally, we can support the many hundreds of jobs which exist in our supply chain."
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"Just as importantly, we can continue to develop our award-winning apprenticeship scheme, and offer vital opportunities to local young people and adult apprentices, helping to develop essential skills for the future."
During the consultation process, the firm said it will work with its employees and trade unions "to secure the best outcome for as many of our workforce as possible".
The statement added: "Our aim is to make as many voluntary redundancies as we can, minimising the risk of compulsory redundancy.
"We fully understand that this news will have a major impact on employees and their families that will be affected. However, we firmly believe that action taken now, will ensure that Cammell Laird is agile, sustainable, and profitable. Equally, we will be able to deliver our current contracts and bid competitively for future work."
