DAY International, the Dundee plant of international printing company Flint Group, is expected to axe about a quarter of its workforce as a result of reduced Europe-wide demand for print media.
Flint said it was opening consultation with staff to lose 43 of the 167 jobs at the factory following losses of £2.5 million in its European transfer media division.
The company said it has experienced a huge downturn in business as the print media sector copes with the switch to online channels.
The Dundee factory is now operating at less than 50 per cent capacity, which is no longer sustainable.
The company has announced that it is starting a 30-day consultation exercise with staff and their representatives to discuss proposed redundancies and a move to five-day shift working as part of its business recovery plan.