Around 200 jobs are under threat at the Dunlop Aircraft Tyres’ factory in Birmingham.
The manufacturer has blamed the impact of covid-19 on the decision following a drop in orders.
Trade union GMB said up to 199 jobs at the factory in Erdington were now under threat but a further 21 would be created, according to reports by the BBC.
The figure represents just under half of its total payroll of 450 staff but is a "worst-case scenario", according to chief executive Gordon Roper.
Dunlop Aircraft Tyres said it could not afford its current level of staffing while the airline industry was being so dramatically hit by the lockdown.
Mr Roper said the grounding of commercial flights and airline operators entering bankruptcy had meant a "sharp reduction" in demand.
He added that the industry would not "return to normality for a number of years".
A 45-day consultation process is under way with staff and trade unions
GMB Organiser Rebecca Mitchell said: "We’re incredibly disappointed to see proposed job cuts at Dunlop.
"We’ve arranged emergency talks with the company this Friday and will be in a better position to respond to the proposals after this.
"Whatever happens, we will continue to fight for our members' jobs."
