Some 60 workers at SPC Ardmona's Mooroopna, Vic, processing face the sack following the company's decision to close part of the plant.
The company, which is owned by Coca-Cola Amatil, has blamed the strong Australian dollar for its inability to compete with cheaper processed food imports.
The drought was also a factor as it has resulted in unused capacity at the plant.
According to the Australian Financial Review, SPC Ardmona will shift the processing of pears and peaches from Mooroopna to its nearby Shepparton facility.
However, SPC will continue to process tomatoes, fruit snacks and some juice products at Mooroopna.