Drugs giant GlaxoSmithKline has announced 200 jobs will be axed at its factory in County Durham.
The pharmaceutical company is to shed the posts at the plant in Barnard Castle over the next 12 to 18 months.
The company, which employs more than 1,000 staff at the site, said the move was necessary to create a sustainable future for the factory.
Bosses said it was a regrettable but essential decision and consultations were under way with staff and unions.
Speaking on Tuesday site director Roger Connor said: "It is a difficult proposal for the company to make and I want to emphasise that it is not a reflection on the quality of our staff or on our commitment to the Barnard Castle site.
"We will continue to invest in the site with £17m planned for 2009 and the proposed restructuring will put us in the best possible position to ensure a sustainable future for the site."
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