A Dundee-based battery manufacturing firm is to cut almost 200 jobs at its operations across Europe.
Axeon Holdings has seen a fall in demand for the batteries it produces for power tools.
About 150 production posts will go at its factory in Poland and a further 35 professional jobs will be axed in Dundee and possibly Germany and Poland.
However, the firm remains positive that demand for its batteries for electric vehicles and mobile products will grow.
Axeon had expected one of its major customers in the power tool business to increase its demand for batteries by 15% in the second half of the year - however the volume has fallen by 15% instead.
'Notable successes'
Chief Executive Hamish Grant, said: "Sadly the recession is upon us and all companies are having to look very closely at their revenue plans for next year and have to adjust their headcounts appropriately.
"It's very sad because we are letting go some very good people who in other circumstances we would want to keep."
Mr Grant predicted that next year would be tough for all businesses but felt the medium to long-term was positive.
He said: "We have three product groups - power tools, mobile products and then automotive and we make battery packs for each.
"While power tool will decline next year, the mobile products and the automotive, we think, despite the tough economic conditions will actually still grow.
"So we are positioning ourselves so that next year we survive and then in the following years as the economy picks up, as it will do, then we will be well-positioned to grow.
"From a small base we are having some very notable successes, and just on Monday we were able to announce a battery pack for a prototype high performance sports car with a German customer based on a Porsche body shell."
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