Ninety five jobs are going at the Birmingham-based van maker LDV after a fall in demand for vehicles during the downturn in the global economy.
About 1,000 people are employed by the company at its Washwood Heath headquarters in the city.
The jobs cuts were likely to take effect by the end of the year, it said.
A spokesman said it was unable to keep production at the levels it had forecast despite launching new markets in Russia and eastern Europe.
Asked about the future, Guy Jones, marketing and PR director for LDV Group, said: "We've reacted to the market as it is today.
"Clearly we're looking at the latest forecasts for the next few months at the moment, so we've got no further plans today.
"But it very much depends on the global economy and how the vehicle market recovers in the next few months."