All the affected staff will be offered alternative employment, said the company.
Mark Adcock, md of the Poppets chocolate manufacturer, said the Skegness plant was working very close to capacity.
“We need to invest further to meet the demands of the major retail customers who are fundamental to our business and continued growth,” said Adcock.
‘Strong talent pool’
“We have looked carefully at all the options, taking into account the cost and feasibility of developing the Skegness site and the fact that there is spare capacity and a strong talent pool of skilled workers at our other production facilities.”
Workers at the Skegness site are represented by a staff council not a union.
Glisten, part of the Raisio Group, makes a wide range of own-label and branded chocolates, boiled sweets, gums, jellies, toffees and popcorn for UK retailers.