US dairy giant Dean Foods has decided to cut more jobs as part of efforts to slash costs at the company.

Dean Foods confirmed that the jobs to go would "primarily" affect employees in its Dallas headquarters that support its Fresh Dairy Direct division. The company declined to specify the exact number of jobs that would be lost but said "significant" cuts were made at its office in Dallas.

"The market for our Fresh Dairy Direct business has changed dramatically and dictates a leaner structure," Dean Foods said. "These are necessary but difficult decisions to help stabilise our Fresh Dairy Direct business and make Dean Foods as a whole stronger for our employees, shareholders, customers and consumers."

Dean Foods is in the middle of plans to "dramatically" reduce costs at the company. It has cut jobs from its Fresh Dairy Direct unit over the last two years as it faced volatile input costs and fought fierce competition from private label, which drove down prices. Staff in corporate functions throughout the company also lost their jobs as the group looked to cut costs.