Hundreds of job losses are expected at the MINI production plant at Cowley, Oxford.
BMW, which owns the car factory, said 400 out of the 950 agency personnel onsite would be affected.
A 'substantial' fall in customer demand during lockdown has led to a decision to reduce the number of shifts at the plant.
BMW said in a statement that the COVID-19 pandemic had resulted in a "substantial impact on customer demand" and its volume forecasts for 2020 have had to change accordingly.
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