Honda plans to cut 800 jobs at its Swindon plant, following "low demand" for its vehicles across Europe.
The carmaker's European vice president Ken Keir said the Japanese company remains "fully committed for the long-term" to its UK and European manufacturing operations.
"However, these conditions of sustained low industry demand require us to take difficult decisions," he said.
"We are setting the business constitution at the right level to ensure long term stability and security."
The surprise move comes after Honda hired 500 workers last year following investment worth £267m in its Swindon factory.
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