Almost 40 jobs will be lost in the Central Victorian town of Castlemaine, as a major company undergoes a restructure.
Valve and pump manufacturer Flowserve says it needs to restructure its pump division to shore up the company's financial position.
Only last year the town lost about 40 jobs when Flowserve shut its Castlemaine foundry.
Employees were told of the move yesterday afternoon.
The company says discussions will take place over the next week with the union and employees, and voluntary redundancies will be offered over the next six months.
The company says while the town will bear the brunt of the restructure, there could also be job losses at its steel foundry in Coburg and at its service centres.