The company expects the profits would fall below $20m, which is less than one-tenth of current levels in the 2014-15 financial year.

The move is the result of a range of factors such as the softening demand in the national electricity market as well as the effect of the repeal of the carbon price on market prices.

Additional factors include uncertainty about the future of the renewable energy target, the impact of the energy reform process and the ongoing downturn in the consulting market.

Business-wide process improvements have already been implemented by the company and is currently is working to improve the benefits of the changes.

Currently total workforce at Hydro Tasmania group is 1092 people while the current process is slated to be concluded within the next two months.

Hydro Tasmania CEO Steve Davy said the business had already requested expressions of interest for voluntary redundancies from people and also a number of people had left as a result.