Heavy-duty truck company Kenworth Trucks will cut jobs from its plant at Bayswater, in suburban Melbourne.
The ABC reports that, while the company has not yet confirmed the exact number of job losses, the manufacturing workers union claims that 50 people will lose their jobs.
Kenworth said in a statement that the decision was made in order to adjust its build rate to match the current market.
"As a result, effective from Friday, (the company) has made an adjustment to employment levels."
According to Dave Smith from the AMWU, the 50 jobs will be from the assembly line and also include some office jobs.
Kenworth employs over 800 people and builds and designs heavy duty trucks for the Australasian market.
As Australasian Transport News notes, the company recently delivered its 50,000th Australian-designed and manufactured truck at Bayswater.
It has designed and manufactured Australian trucks since 1971 and supports several local suppliers which provide it with most parts and materials.