Webbs Country Foods chicken processing factory at Lymington in Hampshire will close down this summer as part of a rationalisation programme announced by parent company Faccenda Group.
A spokeswoman said Faccenda was "restructuring its operations rather than scaling things down".
The 500 staff will be relocated where possible to support new developments at Faccenda's remaining processing plants, which supply poultry products to the UK multiples.
Faccenda is investing £6m on new equipment and facilities in Telford, Dudley, Brackley and Sutton Benger.
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