Up to 87 jobs could be axed at the Walkers crisps factory in Lincoln.
New state-of-the-art packing equipment will be installed in the factory following a review of the site in Newark Road.
Owners PepsiCo made the announcement today.
Steve Switzer, site leader at Walkers in Lincoln, said: "As a result of this change we will be entering a consultation period at the site which may result in the loss of around 87 of the 251 jobs on site.
"This has been a tough decision to make and we recognise that this is difficult news for some of our employees."