Up to 22 jobs could go at a sawmill in the Cairngorms, its owners have warned.
BSW said its site at Boat of Garten had been affected by "very difficult trading conditions" caused by a downturn in sales activity.
The company said it expected most staff affected to leave with redundancy pay.
Family-owned BSW, which has its headquarters in Earlston in Berwickshire, is one of the UK's largest forestry businesses.
The firm said it was proposing to restructure timber production at Boat of Garten and transfer the majority of some operations to another site.
In a statement, BSW said: "This will help to more economically convert production, consequently improving the financial figures at BSW, Boat of Garten.
"This may result in potentially reducing the headcount by up to 22 people across the site, most of whom will be by reason of redundancy.
"We have now entered a group consultation period with employee representatives which will then be followed by detailed consultations with affected individuals."
The company said it had asked for volunteers to leave with redundancy pay before finalising any compulsory redundancies.
The Scottish government's minister for business, fair work and skills, Jamie Hepburn, said: "I am very concerned to learn of the developments at BSW and the impact this will have on the employees affected, their families and the surrounding area.
"Highlands and Islands Enterprise is engaging with the company to understand the current situation.
"In the unfortunate event of any individuals facing redundancy, the Scottish government will provide support through our Partnership Action for Continuing Employment PACE initiative."