Illawarra Coal will cut 85 jobs - mostly managerial positions - as part of phase two of its organisational review.
Illawarra Coal president Troy McDonald said the company talked to its employees on Tuesday regarding the results of the review.
“The coal industry has been experiencing difficult market conditions including continuing low coal prices and oversupply,” Mr McDonald said.
“The industry is also undergoing a difficult transition and to be globally competitive the cost base of our operations must be reset.’’
In April, the company announced 36 employee and contractor roles would in phase one of the review.
“In this challenging environment, Illawarra Coal has been focused on improving cost efficiency,’’ Mr McDonald said.
“While this has been a difficult decision having regard for the impact it will have on employees and their families, it is regrettably a necessary one if we are to operate a sustainable business in the Illawarra region.”
Affected employees will be provided with support services and some will be eligible for a redundancy package or redeployment opportunities.
Illawarra Coal employs about 2000 people including contractors.