A rejigging of Cavalier Bremworth's operations will see up to 68 jobs lost from Whanganui and 36 from Christchurch.

Citing decreasing demand for woollen carpet, the company said it would move its woollen yarn spinning operations from Whanganui to its Napier plant to "realise greater efficiencies".

Under the proposal, staff at the Whanganui factory will be cut from 108 to 40. As well, the company's felting plant in Christchurch will close with 36 job losses.

Cavalier Bremworth said consolidating the spinning plants in Napier would create 39 more positions, and staff in Whanganui and Christchurch would be able to apply for those jobs as well as the positions remaining in Whanganui.

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Chief executive Paul Alston said the company was talking to staff about the proposed changes and was aiming to have everything finalised by May 2 and the process completed by October.

"Demand for woollen carpet has decreased over the past decade and as a result we now have excess wool spinning capacity across our Whanganui and Napier plants. In addition, we have felted yarn capacity constraints at our Christchurch plant."

Mr Alston said the company had considered consolidating the spinning operation in Whanganui but the plant was not big enough.

He said the business was aware of the impact the proposed changes would have on staff and where possible would be offering relocation opportunities.