Canadian food company Dare Foods plans to lay off up to a third of its near 400-strong workforce at its plant in Kitchener.

Up to 130 jobs will be phased out before August, but most of the layoffs are connected to the scheduled July closure of a production line, reported the Kitchener-Waterloo Record.

Dare president Fred Jacques said the bulk of the layoffs were due to the loss of a significant contract, but declined to name the customer.

Dare Foods, a cookie, cracker and sugar confectionery manufacturer, employs over 1,000 people at eight facilities in Ontario, Quebec and the US.