Dutch dairy FrieslandCampina will cut 15% of its staff in Germany in an attempt to enhance competitiveness.
FrieslandCampina will make 230 of its 1,500 staff redundant at sites in Cologne, Gütersloh and Heilbronn. However, the company will not close any dairies or processing plants.
The firm's margins have been squeezed in recent years by competition from German supermarkets and higher milk prices, which it has been unable to pass on to consumers.
Germany is FrieslandCampina's second largest market representing 14% of sales, second only to the Netherlands, which accounts for 25% of businesses.
The firm awill begin negotiations with labour groups "immediately".