The factory was making less crumb (base product to make other goods), meaning less work for some staff, who it was hoped would be moved to other parts of the factory, site manager Adam Burton said.
Staff members, who were informed yesterday, reacted "as well as could be expected".
"It's a change for them maybe from the current work that they're doing to some other work. It's people coping with the change process."
It was "fair to say" staff could have reduced hours, but the company was trying to ensure people retained their level of work.
"On a site of up to 500 [workers], it's quite a minor change."
Five of the workers were short-term contractors who would finish at the end of March, as previously arranged.
Staff were happy with the new investment at the plant, which was running more efficiently than in the past, he said.
Bagging equipment worth $1.4 million, installed at the end of last year, would be used to wrap the new products. As well as being used for the new products, it had sped up production of existing products.
"The investment we've made has allowed us to make more with less."
The new products, which he declined to describe, were for the Australia and New Zealand markets.
The first shipment of the new product was already on its way to Australia, for launch in April.
New Zealand launch dates were unavailable.
Focus was shifting from crumb to finished products, although the Dunedin site continued to make base product, Mr Burton said.
Changes to demand for crumb were still being worked through.
"[Cadbury is] choosing the best place to make it."
Service and Food Workers Union strategic industry leader for food, Chas Muir said some staff faced "significant" pay drops.
Crumb production would run five days a week, rather than seven, Mr Muir said.
While redundancies were not planned, the union would closely examine the "credibility" of the new roles.
Some staff members, paid up to $80,000 a year with overtime and allowances, faced a drop in income of up to $30,000 a year, he said.
Twenty-five union members were affected by the drop in producing crumb, which was no longer required for Australia, Mr Muir said.
