Vale is expecting to lay off several hundred workers at its Long Harbour construction site in the near future.
The company said the move is necessary in order to finish the construction of the nickel processing plant on schedule.
Bob Carter, the manager of corporate affairs for Vale in Newfoundland and Labrador, said they're "de-mobilizing" work on one part of the project in order to move workers to the main construction site.
Carter said that some trades will not be required for this phase of construction, which will result in layoffs in the hundreds.
According to the company, it is still on track to begin the operational phase of the processing plant by the end of October this year.
More details are expected to be released on Tuesday.
The Long Harbour site employed approximately 4,400 construction workers at its peak.