The firm, which makes own-label frozen ready meals for the mults, has started a 90-day consultation with staff at its Castle Park base in Flint, Wales.
Headland Foods is part of the Prize Food Group which also includes Cheviot Foods. It produces more than two million meals per week across its sites in Flint and Grimsby.
The company cut 95 jobs last year, blaming a downturn in sales. Reports suggest the factory could be closed and production transferred to Grimsby.