Grocery giant Woolworths says as many as 200 staff could be affected by its decision to outsource road transport services to trucking company Linfox in Victoria.
Staff not redeployed within Woolworths will be offered a redundancy.
Woolworths said Linfox has been invited to talk to staff about potential employment prospects at the trucking company.
The outsourcing is expected to take place in April and May and Woolworths said it would explore all opportunities to minimise job losses.
The change brings the company’s transport services in Victoria into line with other areas of Australia that have already been outsourced.
“We will work with the 200 staff to redeploy them within the Woolworths business,” a Woolworths statement said.
“Staff who are not redeployed will be offered a redundancy, and we will work through these details with staff and the union.”
Woolworths’ road transport in other states is managed by transport specialists including companies such as Toll and Linfox.
Woolworths said the move would allow it to focus on the core business of retailing.