Oil and gas services firm Weatherford is considering the closure of its Aberdeen-based UK manufacturing arm due to the "unprecedented challenges" brought by Covid-19.
BBC Scotland reported that it was undertaking a strategic review and consulting with potentially affected employees.
However, the business insisted Aberdeen would remain the centre of its UK operations.
No further details were made available regarding how many employees the consultation involves.
"The oil and gas sector has recently faced unprecedented challenges driven by the Covid-19 pandemic and global market conditions," read a statement.
"Weatherford has conducted a strategic review of its global manufacturing group to ensure the cost structure and capacity is aligned to the current and projected market environment.
"The outcome of this strategic review is the proposed closure of the UK manufacturing facility located in Aberdeen."
Headquartered in Texas, the company has several bases in the Aberdeen area, including an administrative headquarters on the Altens Industrial Estate.
It also has a completions and production centre in Dyce, a tubular running services facility on the Kirkhill Industrial Estate and a rig training centre at Bridge of Don.
Last August, Weatherford revealed it had made 130 staff redundant in Aberdeen during the first half of 2020 in an effort to cut costs.
Group losses rose to £1.18bn in the first six months of the year, up from £610m in the same period the previous year, while revenues fell 23% to £1.53bn.
