A fish filleting plant in Hull is to close as its operations are transferred across the Humber to Grimsby.
All 41 staff at Midgleys are being given the chance to relocate to The Seafood Company in Grimsby.
Fish filleting operations at Hull are being switched to the Grimsby site, which already prepares and packages the firm's products.
The company said the cost of transporting fish between the sites "does not make commercial sense".
The decision was made against a backdrop of fuel price increases and toll charges on the Humber Bridge, it added.
Managing director Pete Ward said: "In the current economic climate, the chilled fish market has become increasingly price competitive and we need to be in a position to compete on a level playing field with our competitors.
"We hugely regret having to table this proposal.
"There is a significant amount of expertise amongst the workforce at Midgleys who have been loyal colleagues and, should it close, we are keen to retain as many as possible within other jobs at our [Grimsby] factory.
"If staff are unable to relocate we will do our utmost, together with the relevant agencies, to find them alternative employment."