The newly merged GlencoreXstrata has axed 46 workers at its Ravensworth mine in the Hunter Valley.
The cuts at the coal mine, located near Singleton, are part of the company’s ongoing operational review.
Workers were notified last night, the ABC reports.
One employee who lost his job said the community flow on effects will be devastating.
"In so far as wages to the community it’s a minimum five million dollar loss to the community an injection of cash into it and then you've got the impact on at least 46 families," he said.
The changes are a response to increasingly difficult market conditions and will involve a restructure of operations including reducing the number of crews required as well as some maintenance, support, and services functions, the company said in a statement.
Ravensworth general manager Tony Galvin said the difficult decision reflected the commercial realities faced by the mine.
“We are making tough decisions to remain viable during these challenging economic times” he said.
The redundancies come as the miner halts the site’s Liddell Seam project as a result of industry cost pressures.
“We are proposing to continue operations on a scaled-down basis, which will mean consolidation of the workforce and, unfortunately, reductions in staff numbers,” Galvin said.
“However, we will be providing support for those employees whose positions are affected, including pursuit of all reasonable redeployment opportunities.”
In September Australian Mining reported both Ravensworth and Ulan mines had been earmarked for job cuts.
The Construction, Forestry, Mining and Energy Union at the time said Xstrata intended to axe around 30 jobs from the Hunter Valley as part of wider job cuts at the company.