Holden is cutting about 500 jobs in Australia.
Production workers and vehicle development employees are to be main target of the job cuts.
Holden's managing director Mike Devereux told a news conference in Adelaide on Monday that 400 redundancies will be from its plant in Adelaide, with another 100 in Victoria.
Holden cut its workforce by about 170 late last year citing a strong Australian dollar and slow car sales, the ABC reports.
The carmaker was last year given a $A275 million state and federal government assistance package after concerns it would withdraw its Australian manufacturing bases.
Holden employs more than 4000 workers in Australia.