The job cut is part of a strategy by the company to reduce the thermal coal production of the site by two million tones, in view of slump in coal prices.
Glencore will not be closing the mine, instead it is planning to operate at reduced capacity for the rest of the year.
The company is looking for alternative marketing opportunities and a new plan for the mine.
According to the company, fall in coal prices are due to oversupply in the global export market.
Glencore has already started discussions with Collinsville employees about the operational changes which will be effected at the mine.
Glencore spokesperson said: "We have support services in place for those employees and their families who are affected by the decision, and we will look at options to redeploy people to other Glencore operations."
