Nyrstar to cut 60 jobs in Hobart

Zinc producer Nyrstar has announced it will slash 60 jobs over the next 18 months at its Hobart smelter to cut costs as the recession bites.

Nyrstar says up to half the job losses will come from the smelter's contract workforce.

The decision will help the company secure the jobs of its remaining 540 employees and contractors in Hobart.

Tasmanian Treasurer Michael Aird said on Thursday the government will work with Nyrstar and unions to help the 60 workers gain new skills, enabling them to find other work.

"The restructure announced today will ensure the Hobart smelter has a sustainable future and, importantly, will provide certainty to the remaining 540-strong workforce at Nyrstar," Mr Aird said.

Tasmanian Liberal Senator Eric Abetz said the announcement highlights the absolute folly of the federal government in persisting with its proposal to further tax Australia's industry through its flawed emissions trading scheme, at a time when they are already under extreme pressure.