UP to 95 jobs could be under threat at Centrax, one of south Devon's largest engineering companies.
The Newton Abbot company has told union officials that the jobs are at risk due to 'difficult market conditions'.
A 30-day consultation is under way, which could mean employees of the turbine components division being made redundant just before Christmas.
Tony Wiltshire, director of Turbine Components, said: 'I can confirm that Centrax Turbine Components are in redundancy consultation with our workforce with up to 95 jobs under threat, due to difficult market conditions.
'We have a number of options to consider to minimise the impact on our excellent workforce.'
Dave Springbett, Unite's district secretary for south Devon, said that union officials would be examining every possible alternative including early retirement, redeployment and voluntary redundancy. But he did not think that it would be possible to avoid compulsory redundancies altogether.
'Centrax is suffering the same as everyone else. These days I'm scared to pick up the phone. I've seen it right across every industry and service company affected by the downturn. No one seems to be immune,' said Mr Springbett.
'While it is not entirely unexpected, it is nonetheless a shock for people in the run-up to Christmas.
'There is never a good time to lose your job, but there can't be a worse time. I sincerely hope that the recession is short-lived and Centrax get back into a position where they can take people back on again.'
Centrax has 850 employees at its Newton Abbot headquarters in Shaldon Road, which has a Gas Turbine Division and Turbine Components Division. The Turbine components division employs some 550 people with more working in Europe.
It manufactures parts for gas turbines for civil and military aerospace industry and industrial gas turbines.