Pharmaceutical giant GlaxoSmithKline (GSK) is cutting 55 jobs at its plant in Montrose, Angus.
The reduction in posts is part of efforts by GSK to save £700m a year by 2010 across its global operations.
Demand for products made at the factory have also not been as high as originally expected.
Just over 300 people are permanently employed at the site. Another 70 temporary staff will see their roles phased out by the end of the year.
Montrose site director Alan Catterall said: "We have to remain competitive and the proposals represent the best route for the future of the Montrose site and for GSK overall.
"The position the site finds itself in is not a reflection of the performance of staff at Montrose, who have shown the highest levels of professionalism, achieving every milestone and target over the last 18 months.
"The workforce at Glaxo have been on a rollercoaster for the last few years"
"It is a reflection of the fiercely competitive nature of the marketplace for our products and the need for GSK to respond to this difficult environment."
Angus MP Mike Weir said: "Obviously first thoughts are for the people who're losing their jobs - it's obviously a very hard time for them and their families and I hope they'll be able to find alternative employment quickly.
"They (GSK) have given an assurance that they are committed to remaining in Montrose, which is obviously good news.
"The workforce at Glaxo have been on a rollercoaster for the last few years - it was previously going to be sold, then closed and then it was reprieved. Although Glaxo is well down from its peak, it is still a big employer in Montrose and the wider Angus economy.
"So we're very anxious that there is no threat to the future of the facility."
Mr Weir and Angus MSP Andrew Welsh will meet representatives of the company on Friday to discuss the plans.
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