Ballymena-based Wrightbus is axing up to 125 workers in response to the economic downturn.
Over 30 permanent staff members will be made redundant while agency staff will be reduced by around 90.
A large proportion of the workforce has been furloughed during the COVID-19 crisis.
Chief Executive Buta Atwal said the move is vital to secure a stronger future for the company.
North Antrim MP Ian Paisley has urged the government to move forward with the hydrogen bus plans for the UK. Wrightbus could produce thousands of buses if the move was to go ahead.
“It is very disappointing that Wrightbus have been forced to announce redundancies,” said Mr Paisley.
“There are obvious fears about the longer-term impact of the COVID-19 outbreak on the wider Northern Ireland economy and that such redundancies will escalate in the future.”
A consultation will begin on Monday, May 25, with talks being conducted online due to current government social distancing guidelines.
North Antrim MLA Jim Allister said the move is a hard blow for the workforce and district.
“The key task now is to ensure this is the last we hear of job losses at Wrightbus. That can be achieved by government and all other interests getting behind the hydrogen bus revolution that Wrightbus is leading.
“In the green energy alternatives Wrightbus producing hydrogen fuelled buses is the far better option for Northern Ireland, and indeed the whole UK, than preference to battery charged buses whose technology mostly comes from China. Some recent promotion of such battery driven buses by the Department of Transport in London is not helpful,” he added.