A well-known mushroom business in Havelock North is halting production and making most of its 110 staff redundant.
Te Mata Mushrooms chairperson John Seton said the Havelock North facility was not fit for purpose.
Staff were told about the shut down on 24 August.
They will remain employed while the final crops are picked and supplied, over a month to six weeks.
Over time, staff numbers will be reduced to about 10 or 15.
The company wants to focus on building a new facility in Central Hawke's Bay.
Te Mata Mushrooms has previously been criticised by residents for putrid odours leaking into homes.