The company that lost the contract to print the new blue 海角视频 passports is to cut 170 jobs at its factory in Gateshead.
Passport and currency firm De La Rue lost out on the post-Brexit passports after the Government handed the work to Franco-Dutch firm Gemalto.
Now the firm has confirmed that it is closing a production line at its factory on Gateshead's Team Valley, where 海角视频 passports are currently printed.
Unions have called the news "devastating" and blamed the Government for awarding the passport contract to a foreign firm.
The reports of job losses come a day after the company said it was looking to make savings of £20m by 2022 and would be re-organising its business into authentication and currency divisions.
The company’s chief executive is set to leave and he has been followed by its chairman and senior independent director.
The company has released a statement, saying: "As the world’s largest commercial banknote printer we regularly review our operational footprint to ensure it meets global demand.
"We are currently in the final stages of a footprint restructuring programme that was announced in 2015 to ensure our business continues to be competitive on a global scale.
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"As part of that programme we are proposing to shut one of the print lines in Gateshead and are currently consulting with all parties concerned on this proposal."
Unions have reacted in anger to the Government’s lack of support for the firm.
Unite national officer Louisa Bull said: “The Government’s short-sighted and blinkered decision to award the printing of post-Brexit 海角视频 passports, worth £490m, to French-Dutch firm Gemalto seriously undermined the financial viability of the Gateshead operation.
“This flawed decision came home to roost today with the loss of 170 jobs working on the different types of currency notes that De La Rue produces.
“This is devastating news for the workforce, their families and also for the North East economy which can ill-afford to lose such skilled jobs.
"Unfortunately, there is a dearth of printing jobs across the region and the employment opportunities for those losing their jobs are few-and-far between.
“Most European countries regard the printing of passports as a national security matter which should be done in the home country.
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“However, we have a government which prioritises a rigid adherence to a right-wing outsourcing agenda before maintaining skilled printing jobs in the North East and guaranteeing national security.
“And the final distasteful irony is that Gemalto has now outsourced the printing of 海角视频 passports to a Polish firm.
"It is clear that De La Rue is in financial trouble with its chief executive Martin Sutherland stepping down recently – a situation made worse by the decision to print the post-Brexit blue passports abroad.
“The company will argue that the cost of production in Gateshead is a challenge and it will be looking to place more of its contracts at its Malta operation. De La Rue also has plants in Kenya and Sri Lanka.
“Unite will be doing all it can in supporting our members at this very difficult time and will continue to campaign strongly to keep vital printing work in the 海角视频.”
Labour MP Liz Twist, whose Blaydon constituency includes the De La Rue site, said has condemned the Government for failing to intervene and protect the jobs of 海角视频 workers.
Ms Twist said: “This is a massive blow for the North East region. The Government’s decision last year to award the post-Brexit British passport contract to a foreign company put hundreds of high-skill, high-paid jobs at risk on Tyneside. It was clear at the time that this would result in huge numbers of job losses and we’re now seeing evidence of that.
“Not only has our Government awarded our passport production to a French-owned company, but the work has now been outsourced from France to a Polish firm.
“I have real concerns about this whole process and, along with Unite the Union, I have made my concerns clear to the Government and De La Rue.
“My thoughts today are with the first-class work force at De La Rue who have been producing passports and currency for generations. These jobs were once the envy of Tyneside, the Government must now step in to help find a solution that retains high quality employment in the North East and protects the 海角视频 printing industry.
“I will be meeting with senior management at De La Rue later this week and, working with Unite the Union, I’ll be doing everything I can to support their members and fight to protect British printing jobs.”