Helicopter manufacturer Leonardo is to cut 150 jobs from its base in Yeovil.
The firm, which employs 2,800 people in Somerset, claims the redundancies are needed to keep the business competitive during the coronavirus pandemic.
A consultation process is currently under way involving the company and trade union representatives.
Managing director Nick Whitney, said: “By taking action now we will make sure we are well-positioned for the future."
While Leonardo did not have to furlough any staff, it said the pandemic has changed the marketplace for future business.
Mr Whitney said: "This restructure is a consequence of an increasingly competitive and evolving global marketplace.
"This is about restructuring our business to match the future size of our workload and anticipated order intake, as well as improving our performance and cost competitiveness to position us to win new business for the future.
“I recognise that this will be a difficult period for all."
Those working in high-value engineering and manufacturing jobs at the firm will be largely unaffected, as will those undertaking apprentice and graduate training programmes.