Ten jobs are to go at Isle of Man Creamery following a wide-ranging review of operations at the Tromode plant.
Managing director Findlay Macleod says 'extreme pressures' on Island dairy farmers have had a knock-on effect on the Creamery.
Milk supplies fell by 11 per cent last year and again in the first quarter of this year, due to poor weather and sharp rises in animal feed costs.
The jobs have gone across all areas of production, with five Creamery employees made redundant and the other five leaving on voluntary terms.
Coupled with a freeze on recruitment, overall staffing has been reduced by 15 per cent in the past year.
Mr Macleod says numbers had to be reduced to ensure the long-term future of the business: