MACKAY Sugar has axed 35 staff positions as the organisation embarks on a "significant cost reduction program".
Mackay Sugar chief executive officer Quinton Hildebrand said a poor crop estimate for this year and low sugar prices had contributed to the decision.
"The crop estimate for the 2013 crush currently stands at a disappointing 5 million tonnes for the Mackay mills," he said.
By comparison, last year's crop weighed in at 5.6 million tonnes.
"The combination of the poor crop and low sugar price means that if we do not address our cost base, the business will not achieve an acceptable performance.
"A wide range of initiatives have been identified by the senior management group as part of the cost reduction program, with all aspects of the business examined."
Mr Hildebrand said redeployment options would be considered for affected staff.
"We have identified 35 staff positions which potentially will no longer be required," he said.
"However, no decision has been made at this time and we are consulting with staff to consider redeployment options.
"All affected personnel will receive the appropriate support to assist them through their transition."
Mr Hildebrand said the cost reduction program was necessary to refocus the business to secure its success into the future.
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