Some 400 jobs, most from Geelong, are set to be lost at car manufacturing giant Ford.
Most of the roles to be cut are in product development and design, with a small number in other areas.
About 1800 people work for the company in Australia, meaning more than one in five are set to lose their jobs.
Most impacted staff work in the Geelong area, according to Australian Manufacturing Workers Union official Vince Pepi.
He said voluntary redundancies would take effect in September, and union members could access support to help them with the transition.
“We understand that this news will be difficult for many workers and their families, and we want to ensure they have all the resources they need,” Mr Pepi said.
The company said it has started a consultation process.
“The changes are part of Ford’s global drive to improve efficiency and transform its operations to meet future needs,” a spokesman said.
Development of the Ranger and Everest models will remain in Australia.
