Tayto announced to cease production at its crisp manufacturing plant in the Corby, threatening 264 jobs.
The decision follows the cancellation of the only contract at the factory by Proctor and Gamble to manufacture Pringles Minis.
Workers at the plant were informed of the decision this afternoon. (Wednesday)
Tayto, which bought the factory from Golden Wonder, which pulled out of Corby in January 2006, will now be consulting with staff, union representatives, and investment agencies over the proposed job losses.
It has also served notice to a further 300 employees at the group's manufacturing plant in Wednesbury, near Bolton, as part of the review.
Colin Pope, group site director at Corby, said: "Tayto Group has entered into a three-month consultation period with all employees at both plants, as required by law, however it is anticipated that around half these jobs will be saved."
"Proctor & Gamble's decision offers us a potential opportunity to accelerate the group's long term business plans to consolidate some of its production. The snack market is very competitive and dynamic, and this review will significantly strengthen our position in the sector.