A consultation to propose the closure of Bakkavor’s Freshcook site at Holbeach St Marks is underway.
A spokesman said the site employs a total of 680 people work at the site, 520 of which are “weekly paid employees”.
These will be offered roles at other sites, while the remaining 160 employees face a more uncertain future.
A Bakkavor spokesman said: “We can confirm that we are commencing a 45-day consultation to propose the closure of our Freshcook site at Holbeach St Marks.
“As part of this proposal, we will be consulting with all of the employees based at the site.
“The management team has explored a number of different options to improve the performance of the site but has concluded that Freshcook is no longer commercially viable.
“If this proposal goes ahead, we are confident that we can offer the weekly paid employees alternative operational roles across our other Lincolnshire sites and we will make every effort to relocate other employees impacted wherever possible within Bakkavor Group.
“We would like to thank all of our colleagues for their commitment and professionalism during this difficult time.”
Employees have posted on social media that the site will close on April 28.