Around 20 per cent of the workforce is set to be axed at the maker of the famous London black taxi.
London Electric Vehicle Company (LEVC) has opened up a voluntary redundancy programme in a bid to reduce its headcount by around 140 staff.
It said the move was part of a plan to restructure the organisation to "focus on operational efficiencies and greater cash flow generation".
LEVC, which is owned by Chinese car company Geely, makes the well-known black cabs and in recent years has developed electric versions of the iconic cars.
It is headquartered on Ansty Park, in Coventry, where it manufactures its electric TX taxi but the redundancy programme will include staff based elsewhere in the UK.
The company can trace its roots back to 1908 when the first dedicated black cab was specially designed and commissioned for use in London.
In a statement, LEVC said: "The plan will provide support for the business as it enters the next crucial phase of its development and a planned return to sustainable profitability and growth.
"The automotive industry has been heavily impacted by the pandemic, disruption to supply chains and significant global economic challenges.
"As a result of these adverse conditions, LEVC is implementing a voluntary redundancy programme to reduce its UK workforce by 140 people.
"This is part of a series of planned measures aimed at driving efficiencies across the company and will enable future investment into new technologies and products."
Chief executive Alex Nan added: "Since the launch of the world's most advanced electric taxi, the TX5 in 2018, we have sold 7,600 vehicles worldwide and saved 127,000 tonnes of CO2 from entering the atmosphere.
"We are exceptionally proud of our world-class products, our home in Ansty and our employees. However, the business was heavily impacted by the pandemic as well as the wider global economy.
"Therefore, to put LEVC on the path to resilient, sustainable profitability and growth, we are strategically restructuring the business. Ansty remains the home of the iconic London black cab and we will announce further news on LEVC's new strategic vision soon."
