Poole-based Sunseeker International plans to cut 460 jobs - with coronavirus having an 'unprecedented impact' on its sales.
The luxury boat builder stopped production in March due to the COVID-19 pandemic. Many of the employees have been on furlough.
Staff have now been told that 460 jobs are at risk and a formal consultation period will commence.
The company said: "We are committed to maintaining our current UK manufacturing capabilities and we have no plans to move our brand or production elsewhere. We are confident the changes we are proposing will safeguard our future, so that we can emerge as a strong and flexible business, enabling us to continue to build upon our already world-renowned design, engineering and production capabilities.
“A great deal of work is taking place to prepare the business for a welcome phased return to ‘normal’ business although understandably, this will take several weeks as we align and synchronise the various teams."