A tool company may make 1,000 of its workers redundant.
Screwfix said 520 staff could go at the company's Yeovil warehouse while 560 were at risk at its Leicester depot.
A spokesman said the company planned to create 550 jobs at its new Stoke-on-Trent warehouse, due to open later this year.
The company needs a single site at Stoke to handle the rapid growth of its business, said the spokesman.
South Somerset Council recently decided not to back Screwfix's plans to build a new warehouse in Yeovil.
The company says it would look at "alternative roles" for the staff affected, and hopes to retain many of them in the business.
Screwfix is part of Kingfisher plc. Screwfix had a turnover of £56m in 1999-2000, when it was bought by Kingfisher.
That increased to a turnover of £187m in 2002-2003.
The company says it has more than a million customers in the UK.