Real Good Food has warned more jobs are at risk of being cut as part of "radical reforms" to "eliminate overhead costs".
The Liverpool-headquartered food manufacturing business, which specialises in cake decoration, added the move will also "build stronger partnerships with key customers".
The news comes after the listed company launched a voluntary redundancy programme in May which is expected to reduce its headcount by 51.
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Real Good Food said its recovery plan is "well defined" and includes significant price re-sets with customers and circa £3.2m of overhead cost savings to take the business back to profitability".
The group added that it is in advanced discussions to secure an additional £2.5m to support the restructure.
The company said: "Notwithstanding the disappointing start to the current financial year, the board and major stakeholders are confident that the right actions are being put in place to return the business to the sustainable profitability that the company had started to deliver prior to the War in the Ukraine, and post Covid."
Executive chairman Mike Holt said: "Market conditions have remained extremely challenging due to a perfect storm of rising costs and lower revenues resulting in a reduction in management's expectations for the current financial year.
"To mitigate this, we are putting into effect a more radical programme to reduce costs, protect revenues and preserve the inherent value of the group.
"We retain the support of our loan holders and major shareholders to undertake this for which we are grateful."
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