The firm said Christmas order numbers for this year had fallen and the Lincs Turkeys processing plant was no longer economically viable.
A consultation has begun with the workforce at the Grainthorpe factory.
The Lincs Turkeys farming operation, which in 2013 featured a company farmer in a Christmas advert for supermarket chain Waitrose, is unaffected.
A spokesperson for Bernard Matthews said: "The consultation is expected to result in a reduction of approximately 80 employees out of a [total company] workforce of 2,130."
The spokesperson said the decision "was not taken lightly", adding that "processing requirements will be integrated into the Norfolk and Suffolk sites".
Craig Leyland, of East Lindsey District Council, said the authority was standing by with advice.
"It is very difficult. We have tried to intervene in the past in situations where we have had these decisions being made. Effectively they are commercial decisions and it's very hard to intervene in that case," he said.
Bernard Matthews acquired Lincs Turkeys in 2010.
Bernard Matthews is to close a processing plant in Lincolnshire with the loss of up to 80 jobs.