A total of 74 jobs could be cut at an Aberdeen paper mill, due to the impact of the coronavirus pandemic.
Stoneywood Mill celebrated its 250th anniversary this year, after being brought back out of administration.
However, now it has announced redundancies will be made, with 74 jobs proposed to be cut.
Staff at the mill were made aware of the situation last Thursday.
Arjowiggins Scotland Ltd said it would be going through organisational changes “due to a reduction in volume of sustained orders at Stoneywood coupled with a significant financial impact as a result of the ongoing global pandemic.”
It also said the conditions had meant there was “unsustainable operating costs for the business.”
As part of this, it will be cutting the available hours on paper machines by reducing crew levels, and it will also involve combining teams and retraining them to be multi-skilled.
Discussions are currently being held with employees.
The redundancies will affect around 18% of the 420-strong workforce.
CEO of Arjowiggins Scotland Ltd Jonathan Mitchell said: “The coronavirus pandemic has had a significant impact on the Arjowiggins businesses and although we expect to see some recovery next year, we do not anticipate a full return to pre-Covid conditions and our pre-Covid plans.
“Despite trading losses over the last 6 months the business has managed to navigate through the pandemic thanks to the Job Retention Scheme and considerable support from our financial partners including a new EU Framework Covid loan via the Scottish Government.
“However, we must prepare ourselves for the challenging future and we have therefore had to take the difficult decision to restructure the mill to adjust the capacity in order to match expected demand. We have entered into consultation with Unite the Union and employee representatives concerning around 18% of the workforce.
“Having experienced the elation of successfully exiting administration a year ago and creating some true positive momentum in the first 6 months a restructuring program was the last thing that we had on our minds. It has not been an easy decision to take and we are acutely aware of the impact that it will have on the affected people and the wider community.
“However, it is necessary so that we can continue to build on our plans and service our customers worldwide despite a challenging economic outlook.”
He added: “Stoneywood celebrated its 250th anniversary this year which is testament to its ability to adjust and adapt to prevailing circumstances and we are confident that we will once again be successful in adapting to these unprecedented circumstances.
“This is by no means the fashion in which we all wanted to celebrate our anniversary but along with many other businesses across the country we must prioritise realigning our business and ensuring we’re equipped for the future.”