He said while there were a lot of things that could be done New Zealand could not "push back the tide of the global recession".
"I think in the case of Sealord they're actually restructuring their business...they're actually creating some jobs as well as letting some jobs go.
"One thing we have to be realistic about is the recession will ultimately drive some of those changes, it's not to say we're not hugely sympathetic to those who have lost their job, we understand that there will be change," Mr Key told TV3's Sunrise.
Jobs were lost and created even during times of economic growth, Mr Key said.
"You'll always get quite a lot of movement in the labour market, so the challenge here, I think, is to try and hold on to as many (jobs) as you practically can and make sure you're sending the right signals that jobs are being created."
And he believes the Government is doing that.
Sealord, owned jointly by Nippon Suisan Kaisha of Japan and Maori tribes via Aotearoa Fisheries, said yesterday it was seeking to cut 180 land-based jobs in Nelson and was not ruling out the closure of its plant there.
The Service & Food Workers Union (SFWU) said the company wanted to cut the pay of remaining workers by $70 a week.
The plant at Nelson's port employs 650 at the peak of the hoki season but currently employs 510.
