The workers are to be offered voluntary redundancy packages, says the BBC.
Between 400-500 jobs are believed to be going at the Transit plant in Southampton, Hampshire.
Chiefs are also believed to want to renegotiate a recent pay deal struck at the south coast site and have postponed a decision on the future Transit production at the plant.
Sandra Gidley MP told the BBC it was ‘tragic news’.
Local newspaper, the Daily Echo, says remaining workers at the Southampton plant will be hit with a pay freeze.
Remaining workers will stay on a single shift pattern, says the paper, that could cost them £300 a month in lost bonuses and allowances.