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Sanitarium has made 36 staff redundant at its Weet-Bix manufacturing plant in Christchurch after the building they work in was deemed to be an earthquake risk.
The plant's operations were suspended in November and 65 workers were sent home on full pay after it was decided that an earthquake-damaged tower block put staff safety at risk.
The company plans to begin demolishing the tower block on Thursday.
Employees at the plant have been offered redundancy packages and an employee support program.
"It's not a decision the company has taken lightly or without considering all its options," Sanitarium said in a statement on Wednesday.
"At all times, management's top priority is the physical safety, and the emotional and financial support for the team affected by this decision."
Warehousing, distribution and sales teams will continue to operate normally at the Christchurch site, and Sanitarium hopes to move its Marmite production plant once the tower block is removed.
Sanitarium's other plants will produce Weet-Bix stock for the South Island.
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