Carpet maker Cavalier Bremworth will cut around 65 jobs across its three plants in Whanganui, Napier and Christchurch.
Operations in Christchurch will shut down and move to a bigger plant in Whanganui, impacting 36 people either through relocation or redundancy.
Wool spinning operations in Whanganui will also move to Napier, affecting 108 people.
They'll be able to apply for around 40 new positions in the area, or 39 in Napier.
CEO Paul Alston said the company is now working with unions and staff to find them new options.
"We're hoping to get a big uptake in people wanting to stay on and relocate. For people who do not want to relocate we've got out service support for them and there's been a couple of Christchurch manufacturing businesses who have expressed interest in the staff."
Mr Alston said they're working as hard as they can to relocate staff, and offer relocation packages.
"We know it's tough and they just have to think carefully about what they want to do, and consult with us, because we're going to do everything we can to help out staff where we can."
FIRST Union Christchurch organiser David Bristow said many are concerned they won't find work at the end of the year.
"Trying to work through with the company when they can leave, because it's important that they start looking for jobs, but the company's saying they don't want everyone leaving at the same time because there's still production going on."
A drop in demand for woollen carpets is the reason given for the changes.
Take your Radio, Podcasts and Music with you