IN LITTLE more than six months 100 workers at Tomago Aluminium will be shown the door after falling aluminium prices and the rising Australia dollar led the company to restructure its operation.
The smelter is a leading Port employer and the news marks an uncertain few months ahead for the company's 1070 employees and 250 contractors.
But the company, which contributes about $500 million into the Hunter economy annually, plans to maintain production at 528,000 tonnes a year.
"It's not about cutting product," a Tomago spokeswoman said.
The restructure will take place over the next three months with the outcome on where the cuts will be made expected at the end of March.
Job losses should come into play in the second half of this year.
The restructure comes as the smelter has dealt with the announcements of a carbon tax and that majority shareholder Rio Tinto plans to sell its shares in the business.
But the spokeswoman said neither of those were impacting on the restructure.
CEO John Lemberg could not confirm when asked if this would be the last of the job cuts.
"It is difficult to accurately forecast market conditions in these volatile times," Mr Lemberg said. "But this restructure along with cost reduction initiatives will enable Tomago to remain strong through the current difficult market conditions."
Paterson MP Bob Baldwin said the job losses were a sign of the carbon tax's impact and he feared the economic impact.
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