Construction company Silcar, which has won a significant slice of the NBN building contract, is set to lay-off 160 employees January next year.
The company said in a brief statement that it would terminate the employment of 160 staff after it lost the maintenance services contract with BlueScope Steel at its Western Point site.
BlueScope's Western Port site is located near Hastings, approximately 80kms south-east of Melbourne.
"With the expiry of this agreement, Silcar will cease operations at Bluescope Hastings on January 26th 2013," according to the company's statement.
Silcar is jointly owned by Siemens, a German electrical engineering company and Thiess Services, a engineering and services company in Australia and South East Asia.
The company spokesperson declined to comment further on the job losses.