More than 400 jobs in Spalding are set to go as Addo Food Group plans to close its bakery in the town in 2020.
The firm wants to divert production to bakeries in Poole and Palethorpes.
Addo Food Group makes a range of baked goods including sausage rolls and various types of pasties.
The company said the proposed closure, which would impact 405 employees, is required to ensure it is profitable.
Deborah Bolton, CEO at Addo, said: “In order to maintain our market-leading position and meet customer expectations as efficiently as possible, we need to optimise our manufacturing sites to enable a continued investment in quality, service, product and packaging innovation.
“This proposal will allow us to achieve this and whilst we fully understand the disappointment of this announcement for all of our employees, we are committed to doing everything possible to support them over the coming weeks, especially those who would be directly affected.”