ThyssenKrupp Tallent in Llanelli said that "very significant reductions" in orders from Land Rover and Bentley had forced a review of its operations.
The German owned company said it would now start consultations with unions over the cuts.
The firm specialises in chassis and suspension parts for the automotive industry.
I am sure that this is not the last we are going to here of job cut backs in the automotive industry, as car sales slump in the west. Whilst job reductions at car plants make for big headlines, the automotive sector which supplies the parts to the car plants is a a much bigger but more diverse industry.