The jobs will go over the next two years in a plan that will see BCM, the contract manufacturing arm of Alliance Boots, pull out of what it called "unprofitable areas of third-party manufacturing" and focus on Boots' own skincare and beauty products.
BCM is Europe's biggest health and beauty contract manufacturer and produces a wide range of products including Boots' own Soltan sun creams, No 7 skincare products and health products such as cold and flu medicines.
Alliance Boots said that the one-off cost of the restructure would be around 30m and it would include investment in new product technologies that would give it greater flexibility to support Boots' own product development.
In particular, the investment is intended to better prepare the business for growth of Boots' own brands in international markets, especially the US.
However, the group also said that the changes were a response to a drop in demand for third-party contract manufacturing, as well as an increase in regulatory compliance requirements.
Alliance Boots said that it would make "every effort" to offer jobs to the affected staff elsewhere in the group.
In a statement, Alex Gourlay, chief executive of the Health & Beauty division of Alliance Boots, said: "My modernising and improving the efficiency of our Nottingham factory, we strengthen its position for the future and make sure it is more suited to support the increasing global footprint of our product brands.
"It is an important step in our continued efforts to keep contract manufacturing in the UK, despite the ongoing challenges the industry faces."
