Energy giant GE Oil and Gas has told staff at its two sites in Montrose that they may be made redundant.
Workers at both the Charleton Road and Brent Avenue site face job losses.
The news was delivered to employees on Monday - the same day that the company announced a billion dollar merger deal with Baker Hughes.
The new company will have annual revenues of $32 billion (£26 billion) and have operations in more than 120 countries.
It is understood that a number of the 400 employees at both the Charleton Road and Brent Avenue sites in Montrose are involved in a consultation.
GE said it was its policy not to disclose how many workers it was in discussions with.
It is not known how many members of staff will be made redundant.
A GE Oil and Gas spokesman said: “Due to the long-term decline in the oil price, delays and cancellations of major projects have resulted in a drastic reduction in available work for the global industry.
“GE Oil and Gas is proposing actions to reduce the cost structure of the business, including some workforce reductions and consolidation of manufacturing and service operations.
“We don’t make these proposals lightly, but believe action is necessary for the long-term health of the business, to remain competitive and to better meet the needs of our customers.”
Last year, GE Oil and Gas invested more than £13.5 million across its subsea manufacturing facilities in Montrose.
Earlier in the year, GE announced it was in consultation with its workers in Peterhead after revealing plans to close its site in the town.