The Meyer Werft shipyard in north-western Germany has proposed plans to cut around 440 jobs, a spokesman for the company confirmed to dpa on Wednesday.
The shipbuilder is facing financial difficulties. Negotiations with industrial trade union IG Metall and the company's works council are set to begin in June.
Meyer Werft is located in Papenburg on the river Ems, not far from the Dutch border and near the German North Sea coast.
The spokesman said that it was not clear which areas of the company could be affected by possible redundancies. The company employs around 3,000 shipyard workers and secures orders for suppliers and service providers in the region.
"It is important to set the course now to ensure that Meyer Werft can generate sufficient earnings with an adequate equity base by the end of 2027 at the latest and remain competitive internationally," Meyer Werft's management told dpa.
The company said that political leaders are closely involved and that leadership is seeking a consensus that would address the needs of the company as well as employees.
"The future of Meyer Werft is at stake," management said.
The works council on Wednesday morning relayed the announcement of 440 job cuts. The head of the works council at the shipyard, Andreas Hensen, said that the redundancies would primarily affect employees who were not directly involved in the construction of ships.
The Ministry of Economic Affairs in the German state of Lower Saxony, which includes Papenburg, has already come out against redundancies at the shipyard, describing Meyer Werft as of central importance to the entire region.