Around 90 jobs have been put at risk by the proposed closure of a warehouse in Northallerton.
Concerns have been raised about the impact on the economy of the town from the decision to shut the GXO facility in Darlington Road.
BT, which has stressed that it will continue to have a base at the site, outsourced the running of the warehouse to the logistics company in 2022.
It is understood that around 60 people are employed directly at the warehouse, with a further 30 agency staff working at the site.
In a memo to staff seen by the Local Democracy Reporting Service, Keith Haynes, GXO general manager for consumer, said: “Following a joint review with BT of the site and its operations since the DF move, there is a clear business case to move the remaining warehouse operations out of the Northallerton site enabling the closure of the warehouse.”
He added: “This proposal drives savings and operational synergies across the contract.
“I appreciate this is a very difficult message to hear and I want to reassure you that GXO are committed to constant communications with every single colleague on site during this time throughout the consultation period.
“We will do everything we can to redeploy colleagues at risk following this announcement and discuss all possible options throughout the consultation period which will be at least 30 days.”
It is understood that GXO has entered collective consultation with both Prospect Union and CWU.
Mr Haynes said all warehouse operations at the facility would stop by October 31 with a small team kept on to oversee the despatch of the remaining stock by the end of 2025.
A BT Group spokesperson said: “BT is not closing its Northallerton site and will continue to operate transport and other services from that location.
“However, because of significantly lower volumes of activity the warehouse operation that is currently run by logistics partner, GXO, is proposed for closure, and we are consolidating warehouse activity into other BT operations that are managed by GXO.
“Affected GXO employees are being consulted on the options available to them.”
Northallerton mayor Andrew Hugill has spoken of his concerns at the closure.
He said: “Northallerton Town Council is disappointed and concerned at the recent news of job losses, the impact on local people and the wider impact on the economy of the town.
“The council will be contacting GXO to express our concerns.”
Cllr Hugill said the town council would also be taking a “keen interest” in the future use of the site.
Workers have contacted Richmond and Northallerton MP Rishi Sunak asking for his support.
A spokesperson for the MP said he had written to both BT and GXO seeking clarification on the proposals and assurances that staff would be offered opportunities and support to find alternative positions with the two companies.
