UPDATED 5.34PM Cavalier Bremworth hopes staff in Christchurch and Whanganui will move to other centres, to stay with the company.

The downturn in woollen carpet demand means the company is proposing to scrap 68 jobs in Whanganui and 36 in Christchurch.

CEO Paul Alston said those workers are encouraged to apply for the 39 jobs that will be created in Whanganui and Napier.

"We're consulting with the unions on relocation, and I guess it depends on who wants to move and we're not at that stage yet, this is a proposal."

LISTEN ABOVE: Cavalier Bremworth CEO Paul Alston speaks to Larry Williams

FIRST Union said the company is indicating there will be approximately 65 net job losses. It said the Christchurch Radford Yarns Plant could close completely as a result of the restructure.

The Cavalier Bremworth plant is one of the largest employers in the Whanganui region and some staff have worked there since the 1970s.

The company expects to make a final decision on May 2nd.