Downer EDI has confirmed it will be cutting more than 100 jobs at the Boggabri coal mine.
The workers were notified of the redundancies on Friday, with 106 employees being cut from the operation, according to the Naomi Valley Independent.
Australian Mining contacted Downer on Friday; however they were unavailable for comment at the time.
87 fulltime workers and 19 contractors positions were cut.
Around 240 workers remain at the site.
It comes after the mine operator, Idemistu, reduces its production targets.
The CFMEU slammed the decision, with Northern District president Peter Jordan labelling it a setback for the region.
"It’s a horrific blow to the community, particularly if local employees are losing their jobs that have families and live in the community and contractors from outside the place are keeping their jobs,” Jordan told NVI.
We simply won’t accept that.
“We’ll defend the employees to the best of our ability and with the resources the union has got.”
Idemistu COO Rod bridges explained that recent coal chain capacity constraints and the downturn in coal contributed to the need for redundancies.
It comes in the same week as Rio cuts 40 jobs at its Mt Thorley Warkworth mine, around 150 jobs are likely to be cut at Tanami Gold's Coyote mine, Sibelco announces job cuts, and Newcrest lets 150 people go across Australia.