Peugeot Citroen is planning to cut around 20% of its workforce from Warwickshire facilities which include workers from its Pinley House and Tile Hill facilities in UK.
The company cited that it is restructuring operation and planning to achieve the cuts through voluntary cutting the jobs, reported BBC.
Unite regional secretary Gerard Coyne said: "It's been a shock to say the least because in the UK market Peugeot is doing very nicely."
The decision comes after company Carlos Tavares announced a plan in April to cut half of the model range and raise prices of the cars sold.
This is not be the first time Peugeot has shed workforce from UK operation, back in 2006 it closed its manufacturing plant at Ryton in Warwickshire which resulted in loss of more than 2,000 jobs.
Dongfeng Motors previously invested in the company and in return took 14% stake of Peugeot Citroen , a move that further reduced the Peugeot family's control over the company.