Cadbury Australia will reportedly make 20 per cent of the workers at its Tasmanian factory redundant.

It is a “sad day” for these 80 employees, said their union spokesman.

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“What we’re calling on is for that $16 million to be put back into Tasmania to help manufacturing,” said Australian Manufacturing Workers Union (AMWU) state secretary John Short.

“It’s a sad day for workers and a terrible day for Tasmania.”

The chocolate company has blamed a drop in sales and international competition for recent cut backs.

Cadbury Australia recently withdrew its application for $16 million in federal government assistance, saying it could not meet the conditions of the grant.

Prime Minister Tony Abbott was criticised for offering the funding during the 2013 election campaign while refusing to assist SPC Ardmona.

Cadbury is expected to make an official statement on Friday morning.

-with ABC