Cadbury will sack up to 40 Tasmanians working on the Twirl and Flake production lines, as the factory increases its automation.
The move to replace some staff at the Claremont factory with an automated wrapping machine was announced on Thursday evening.
"While a large number of the impacted roles are temporary or will be subject to voluntary redundancy, it is never easy to make these tough decisions or say goodbye to colleagues, many of whom have worked together for years," Claremont site manager Ross Coleman said.
Currently employees manually place Flake and Twirl bars onto a line to be wrapped but new equipment will connect and automate the bar making and wrapping line.
"(It) will increase capacity and remove some of these repetitive motion activities," Mr Coleman said.
