The job losses follow the axing of 50 middle management positions at the company in January this year.
Greater Shepparton City Council mayor Eric Bott says the council was relieved the iconic business would not close as feared.
The council is confident seasonal orchard workers will not be affected by the job cuts, unlike factory work which will diminish.
"A lot of people use the canning season as a key component of their income and priority is given to local people for those positions."
SPC managing director Nigel Garrard said management was keen to remove uncertainty within the company and resolve the matter as quickly as possible so people could "focus on the future".
"We'll be lining up skills against jobs," he told reporters.
"Hopefully the vast majority will be voluntary redundancies."
The Goulburn Valley-based company was acquired by Coca-Cola Amatil in 2005.
It has invested $100 million in capital works upgrades at the Shepparton plant over four years, Garrard said.
Australian Manufacturing Workers' Union's regional food and confectionary secretary Tom Hale says operations will be scaled down at the Mooroopna plant to about 20 weeks each year during canning season.
"It's likely to have an impact on seasonal jobs," he said.
Premier John Brumby said SPC would still remain a huge employer in Shepparton.
"They're employing still, I think, permanently between 400 and 500 people ... during the peak season they employ up to another 4,000," he said.
The cuts are the latest in a spate of job losses in Victoria, after Don Smallgoods last week announced 420 jobs would be cut at its Altona plant and US coffee giant Starbucks axed almost 700 jobs in Australia.
