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Hundreds of call centre jobs in Newcastle and Derby are under threat as the economic downturn continues.
The Communication Workers Union (CWU) said it has been told offices run by Sitel would close with the loss of at least 220 jobs.
The Watford-based customer contact centre provider said the decision was taken to reduce costs.
The bulk of the job losses will be in Derby, with the company merging its two existing Newcastle sites.
CWU deputy general secretary Andy Kerr said: "Sitel has advised us that, due to the severe economic downturn and a contraction of core volumes on the BT account, they will be making closures and job losses.
Reduce expenditure
"This is a sign of the difficult times we're now experiencing but it comes as a great blow to the workers at these sites who are a dedicated and hard-working group of staff.
"We will be in full consultation with the company regarding the impact on staff and will do everything possible to protect jobs in this competitive sector."
A Sitel statement said: "Following a thorough analysis of estate and workforce capacity we will be consolidating two sites in Newcastle into one.
"This decision has been taken in order to reduce expenditure in the light of the current economic downturn and to safeguard jobs.
"The vast majority of positions in Newcastle will be retained, however following further analysis certain support function roles may be at risk of redundancy."
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