A poor crop estimate for this year and low sugar prices has contributed to Mackay Sugar axing 35 staff positions.
According to the Daily Mercury, the company is embarking on a significant cost reduction program to secure its success in the future.
Mackay Sugar chief executive officer, Quinton Hildebrand, said 2013's crop estimate for Mackay mills sits at 5 million tonnes, while last year's was 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," he said
"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."
Redeployment options would be considered for the affected staff, however no decision has been made at this stage, said Hildebrand.