Up to 95 staff at an electronics company on the Porte Marsh industrial estate in Calne are at risk of losing their jobs after Christmas.
Tamura-Europe Ltd, which produces electronic components, says it needs to make savings in light of the economic downturn.
The decision to downsize, which was announced last Friday, is part of a drive to increase profits.
Almost two thirds of jobs at the Calne factory will be affected, although nobody is sure where the cuts will be made yet.
The business moved to Calne two years ago after taking over transformer manufacturer Romarsh Ltd.
A spokesman for the company said: “The object of the study was to come up with proposals by which the company as a whole could be returned to profitability.
“The results of this study were recently considered by the board of directors and the following two changes, which are independent of each other, are proposed: that there should be rationalisation of European manufacturing resources and that all business should be conducted under the name of Tamura-Europe Ltd and that Romarsh Ltd will become a ‘dormant’ company.
“This would mean that whilst some administrative and production would remain in Calne, regrettably as a result of the proposed rationalisation, it is envisaged that this would have the potential impact of up to 95 job losses in total covering both administrative and manufacturing functions from the Tamura-Europe and Romarsh workforce at the Calne plant.
“We would like to emphasise we will not make any final decisions until we have taken into account our employees.”
Calne’s mayor, Coun Roy Golding, said: “I’m extremely disappointed about any job losses in Calne.”
Paul Ogden, president of the Calne Chamber of Commerce, said: “It’s been difficult for a lot of businesses. “We are concerned about the difficulties businesses are having on the Porte Marsh industrial estate.”
The Calne factory at Clark Avenue is the company’s European headquarters.
The company used to be known as Tamura Hinchley Ltd, and produced transformers on the Hopton Industrial Estate in Devizes from 1949 until 2002.