Over 70 staff from Bega Cheese at Bega will lose their jobs by Christmas.
Executive chairman Barry Irvin says he hopes some of the jobs cuts will be in the form of voluntary redundancies.
He said the cuts are a result of a diminishing market in processed cheese slices, and says there will be a "transition in some of the volume" of processed cheese-making to Bega Cheese's Strathmerton factory in Victoria.
Mr Irvin said there will still be 600 employees at the Bega facility.
He said the COVID-19 pandemic is not to blame for the job losses, but a move in the market to more natural cheeses.
He said the company had not made the decision lightly and it was "obviously difficult news" for staff.