CEMENT maker Boral will slash 700 positions from its Australian workforce including up to 10 Tasmanian staff.
The redundancies follow a 100-day review of Boral by chief executive Mike Kane who predicted the move would save $90million a year.
Boral's non-operational areas, including IT, legal, human resources and sales support divisions, will feel the brunt of the job losses.
Most of the Tasmanian redundancies are expected to occur out of Hobart.
Two-hundred Boral workers have already been axed with the rest expected to go by March.
Mr Kane said Boral's high overheads had become "critically exposed" during recent tough trading conditions.
He said the changes would make Boral competitive "not just during the cycle highs but when conditions are challenging".
All affected employees would receive redundancy payments, expected to cost Boral $60 million, and be provided with support, including outplacement services, Mr Kane said.
Jobs losses in New South Wales will make up 40 per cent of the total with Victoria and Queensland each bearing 20 per cent.
Australian Workers Union national secretary Paul Howes said it was a "shocking start" to the year for manufacturing.
He said the decision was probably an attempt by Mr Kane, new to the job, to impress the board and shareholders. Boral shares surged by more than 10 per cent after the announcement.
Opposition industry spokeswoman Sophie Mirabella blamed "red tape, higher taxes and increased business burdens" for the losses.
Acting Employment Minister Kate Ellis said the government would announce its response to the manufacturing taskforce report shortly.