The Roberts Dairy in Iowa City says it will reduce its workforce by more than 25 percent, cutting about 25 of its 90 employees.
Workers at the plant say they found out about the layoffs on Friday.
Roberts Dairy spokeswoman Sarah Lake issued a statement Monday saying the layoffs were due to what she called "business transitions."
Lake said the dates of the layoffs were still being determined, and noted that they would be staggered.
Copyright 2010 The Associated Press.