BILLSON’S brewery has cited cost of living pressures and a change in consumer behaviour as key drivers behind its decision to cull jobs at the Beechworth factory.

The “devastating but necessary” decision was reportedly conveyed to workers earlier this week, with Billson’s Brewery director Nathan Cowan confirming the business was undergoing a restructure on Tuesday.

The exact number of jobs expected to be impacted by the decision is yet to be confirmed, with Mr Cowan noting rising costs of energy, freight, ingredients, raw materials and “the third highest spirit tax in the world” had driven the move.

“As a regional Australian family business, it’s critical we recalibrate our operations to ensure our long term competitiveness in a category dominated by large foreign-owned multinationals,” he said.

“These changes have undoubtedly impacted the team, and in turn, will impact the Beechworth community and the wider region.

“It’s a devastating but necessary response – we will continue to provide support to our team through this difficult process.”

Mr Cowan said he was proud of the revitalised business, which was first opened in 1865 before being re-launched some six years ago.

“Over the past six years, we’ve worked tirelessly to revitalise the business by developing a unique range of flavourful drinks and restoring the historic brewery into a vibrant tourist destination, and we are proud of our achievements in both of those areas,” he said.

“We continue to experience tremendous support from our retail partners, and together we remain committed to delighting out consumers all over the country.”

Beechworth Inc. president Katrina Witherow said it was a "terrible" blow to the Beechworth community.

"Beechworth has that many empty shops already and then to have this happen, it's just like a double whammy - there's a lot going on in Beechworth at the minute," she said.

"It's terrible - times are hard enough as it is, let alone a major employer like this having to restructure.

"They are one of our major employers and they have drawn a lot of people into the workforce there which has been good, but then to have it broken down, it's really sad for everyone concerned.

"It's sad for the community, (and) it's sad for the town to see this happening."

She said the company had previously been a key supporter of local initiatives such as Beechworth Inc.'s Christmas lights project.