Murray Goulburn is expected to sack 60 workers as a response to a reduction in milk supply.
In a statement, the company said roster changes and voluntary redundancies would also be offered.
“This is a continuation of efforts to address MG’s cost base, improve efficiencies and ultimately increase earnings and the farmgate milk price,” it said.
“These actions are regrettable but necessary to ensure a strong MG that can deliver sustainable and competitive returns for our suppliers.”
The statement said that workers affected will be tanker drivers and other support roles from Koroit, Leongatha, Maffra and Rochester.