Cadbury will let go 50 workers from its factory in Hobart before the end of the year in favour of an increased investment in automation.
On Tuesday Cadbury parent company Mondelez International informed the 450 Claremont plant workers that more than a tenth of the workforce would lose their jobs.
It said it expected most of the cuts would be voluntary redundancies.
The cuts form part of a $75 million, 18-month investment in new equipment and automation that will lower reliance on staff.
"The company will realise more efficiencies through investment in new technologies, equipment, and automation, plus increase the skills and capabilities of its people and ensure its teams are the right size," Mondelez said in a statement.
Mondelez area vice president Amanda Banfield said increasing costs and competition were making it difficult for the company to compete against lower-cost European factories.
"To remain competitive, we need to improve our conversion costs by 30 percent," she said.
Tasmanian minister for state growth Matthew Groom said the government will do all it can to assist affected workers.
The Cadbury Claremont factory was one of the more high-profile victims of the June global attack of the Petya/NotPetya worm.
Mondelez earlier this month reported a 5 percent drop in quarterly sales thanks to the shipping and invoicing delays that resulted from the infection.
