Siemens workers in Hebburn face an uncertain future after the firm announced up to 73 job losses.
A total of 58 roles from the rail-related business in North Farm Road Hebburn will be lost as part of changes to the customer service side of the business.
A further 15 staff from the core business in Hebburn and Garforth, Leeds, however, the split between the two sites is not yet known.
It comes after current contacts came to an end, with the business unable to secure further work
Siemens Power Generation Services business in Newcastle will also be taking applications for voluntary redundancy.
A spokesperson for Siemens UK said “We have announced proposed changes to our Customer Services business, part of Siemens’ Energy Management Division, involving a reduction of the number of people employed in Hebburn, South Tyneside and Garforth, Leeds.
"It is with regret that these proposed changes will affect up to 73 people in total.
"The business is coming to the end of existing rail projects and unfortunately has been unable to secure adequate future work. In addition to this, the energy market continues to change and the business faces a significant reduction in demand coupled with an increase in competition.
"Despite our best efforts to mitigate these challenges, we have concluded that in order to maintain our competitive position and ensure long term prosperity for our business, a restructure is unfortunately necessary.
"These proposed changes will affect up to 73 roles in the Customer Services business: 58 roles from the rail-related business in Hebburn, South Tyneside, and 15 from the core business in Hebburn, South Tyneside and Garforth, Leeds.
"In addition to this the Siemens Power Generation Services business in Newcastle informed employees that it would be taking applications for voluntary redundancy following significant market challenges and fundamental changes to the fossil-power generation market in the UK.
"Despite these difficult conditions we are very much committed to a future in Newcastle and are looking at a range of options to make sure we have a sustainable businesses here in the long-term. We’ll be working closely with employees and their representatives throughout this process.”