About 140 jobs are set to go at the London Electric Vehicle Company (LEVC), in Coventry.
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The firm said, like other automotive firms, it had been severely affected by the Covid-19 pandemic and would be looking for voluntary redundancies.
The move forms part of a package of measures to improve cash flow.
LEVC developed London's first electric black cab, with more than 4,400 vehicles now on the capital's streets.
It said a disruption to supply chains during the pandemic and "significant global economic challenges" meant there was a need to restructure the business.
The London Taxi Company, since renamed LEVC, faced administration in 2013 before China's Zhejing Geely Holding Group stepped in to rescue the firm.
It opened a £300m plant in Ansty in 2017, creating more than 1,000 jobs.