More than 60 Whanganui jobs will be lost in a re-jigging of Cavalier Bremworth's operations.
The carpet-making company says Cavalier will move its woollen yarn spinning operations from Whanganui to Napier "to realise greater efficiencies".
This will mean 69 job losses at the Whanganui plant which currently employs 113 staff.
Meanwhile, the company will shift its felted operations to its Whanganui plant and close its Christchurch operation.
That will see 40 jobs come to Whanganui, making a total of 68 job losses.
A company spokesperson said the re-organisation was a "proposal" at this stage and it was currently talking to staff about the changes. It expected to have a final decision by May 2.