The firm is the biggest manufacturer of buses in the UK
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The UK's biggest bus and coach builder Alexander Dennis Limited (ADL) has warned 150 jobs could go at the firm.
The Falkirk-based manufacturer, which employs 2,200 people globally, said it was in talks with trade unions to minimise the impact of the cuts.
The company's chief executive Colin Robertson blamed a market slowdown, and said the full impact of this had only recently become obvious.
It is understood at least half of the job losses will occur in Falkirk.
Nearly half of ADL's entire workforce are based at the plant, which produces bus bodies for use in Hong Kong, North America and Europe.
'Little help'
Cuts could also be made at the firm's manufacturing operations in Scarborough and Anston, Sheffield, where 650 staff are based, and at Guildford, in Surrey, which has 300 workers.
The news comes just five months after the company said it had an order book in excess of £200m.
In November the company also said it had seen its year-on-year turnover rise from £200m to £300m.
Mr Robertson said the job losses would happen despite the company clawing its way back to the forefront of the industry following a management buy-out five years ago and the development of new greener vehicles.
He said: "Against this backdrop, the decisions we face will be doubly difficult but, in consultation with our employees, we will chart a course that minimises the downside and positions us well for the first signs of market recovery."
Mr Robertson called upon the government to look beyond the car industry and to start supporting manufacturers vital to the public transport sector.
He added: "There has been much debate about help for the car industry, which is admirable, but the reality is that there is little help for domestic companies like our own that support thousands of jobs directly and indirectly and are the backbone of the vehicle manufacturing sector."
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