More than 400 jobs at the Mitsubishi Electric factory in Livingston are at risk.
The plant in Livingston, West Lothian, is the largest heat pump manufacturer in the UK.
The firm currently employs over 1,600 people in Livingston but is looking to cut the workforce down to around 1200 workers within the next 45 days.
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Staff were told on Tuesday that a redundancy consultation had begun.
One staff member told STV news: “They pulled us in to the canteen and gave us a briefing on the progress into the companies targets, about how they not as high as they should be “And that they can’t see it picking up any time soon.
“They then told us that they were unfortunately looking to make redundancies, and were asking for 436 volunteers.
“There was just absolute shock in the room.
“Especially considering they had promised this wouldn’t happen only six months earlier.
“I’ve worked there over ten years, but there is entire families who work there, from grandparents to grandkids.
“As a company, they are always banging on about mental health and wellbeing, about how important it is. But this is clearly not the case.”
A letter to staff - seen by the broadcaster - said the firm had “recently experienced a deterioration in demand due to market conditions in Mainland Europe.”
It went on “As a result, the organisation must align the headcount required to match the expected volumes over 2024-25.
“In the current circumstances the proposed course of action would be to make redundancies in the areas where we have identified that there is insufficient work for the current number of employees.”
Labour’s Gregor Poynton, MP for Livingston, raised the potential losses at the Mitsubishi plant during a debate at Westminster on Wednesday.
He said: “This week we’ve heard the concerning news from Mitsubishi Electric, a plant in my constituency, that is looking to reduce its workforce from its current compliment 1,600 by 440 jobs.
“These are highly skilled workforce creating world-leading products, air source heat pumps and air conditioning units which are absolutely vital as we look to decarbonise our economy in the future.
“However, no fault of their own, due to short-term economic pressures they’ve seen their order book fall away.”
Angela Constance, the SNP MSP for Almond Valley, said she was “deeply concerned” by the reports.
“I will be engaging closely with both the Scottish Government and UK Government to ascertain whether anything can be done to minimise job losses, and to ensure that support reaches those who need it.
"In the meantime, my thoughts are with the employees and their families who are facing uncertainty at this time - and I encourage anyone who thinks they may be impacted to contact my constituency office for guidance .”
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A company spokesperson said: “Mitsubishi Electric can confirm that it is in consultation about redundancies with staff at its manufacturing facility in Livingston (Mitsubishi Electric Air Conditioning Systems Europe).
A spokesperson for the firm said: “This decision was not entered into lightly. Our priority during the consultation period is to handle the process with the utmost respect and care for everyone involved.
"We recognise the personal impact of this process and are supporting our team through this transition.
“Despite seeing some growth in the UK market, the majority of our production at the site has been for mainland Europe, where there has been a widespread downturn in demand. This has led to the extremely difficult decision to begin the consultation process.
“We remain committed to our facility in Livingston and manufacturing heat pumps at this site. We do not anticipate any effect on deliveries or supply.”
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