Federation Training is cutting dozens of jobs from its Victorian offices.

Federation Training offers training in the form of pre-apprenticeship courses, certificates and diplomas at campuses throughout the Gippsland region.

Managing director Jonathan Davis said some fixed-term contracts would not be renewed.

“There contracts are linked to project funding that has come to an end. We also have a number of casual staff whose contracts are also coming to an end because it's the end of the academic year,” he said.

“We'll be in a position to offer some of those staff contracts in the new year when we know how many students we've recruited.”

Reports had claimed 40 contract would end, but Mr Davis has not confirmed the figure.

“We're still working through that and meeting with staff individually,” he said.

“I'm not sure it would be as many as that, [as 40 jobs], it's probably less than [40] but there are a number of staff whose contracts will come to an end.”

Federation Training was created by the 2014 merger of Gippsland's two TAFE providers, GippsTAFE and AdvanceTAFE.

“Historically because of the changes we have been through have appointed a higher proportion of fixed-term and casual staff than a normal TAFE institute would do,” Mr Davis said.

“I've obviously inherited that situation and what we've got to do know is to create more permanency and stability for our staff. This is just part of that process.”

The Australian Education Union has described it as a disappointing move that would affect the workloads and morale of remaining staff.