Twenty jobs have been axed at the Bell Bay Aluminium smelter at Bell Bay.
The company made the announcement a short time ago.
General Manager Ray Mostogl said the company announcement the reduction in staff from 453 to 433 to improve the economic viability of its operations.
The positions will be shed from the potrooms area of the smelter's operations. Affected employees will be offered alternative roles or redundancies, Mr Mostogl said.
"This is a difficult time for our workforce, their families and the Northern Tasmanian community, but we will ensure that all impacted employees are treated with dignity and respect and given appropriate support," Mr Mostogl said.
"Employees will receive their full entitlements and we will work with impacted employees to endeavour to identify alternative employment opportunities at the smelter."