Cadbury has confirmed that 60 people will lose their jobs when the company closes a factory in north Melbourne.
The Ringwood distribution centre will close in July when its operations are outsourced.
Cadbury says the decision is not related to a potential takeover of the company by Kraft. It says employees will be paid their full entitlements.
The ABC reports the company has spent $A200 million over the past two and a half years upgrading all its factories in Australia and New Zealand.