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Tetley is creating 11 new management jobs at its tea factory on Teesside, as part of a reorganisation aimed at doubling company turnover over the next five years.
Tetley is to invest £2.5m in the automation of its tea packing plant at Eaglescliffe in the Tees Valley, but 46 of the 600 jobs will be lost.
Tetley has been acquired by Tata Tea of India for £271m, and the brand is expected to be launched into new markets worldwide.
Tetley is selling its US coffee businesses to Rowland Coffee Roasters and Mother Parker's Tea & Coffee for undisclosed terms, in order to focus on its core teabag brands.