Rakon says it will save $10 million per year by shifting some production to China.
The electronics company says some its crystal manufacturing output, which is used in mobile phones, can be made cheaper in its Chengdu plant, though research and product development will remain in New Zealand.
It will also move production from France to India.
The announcement on Tuesday prompted the price of Rakon's shares to jump 10% to 45 cents, though its stock has languished below 50 cents for much of the year and the company has reported losses in two of the past three years.
Managing director Brent Robinson says 15% of the workforce will be affected in New Zealand.
He says 70% of the $10 million in yearly savings should be in place by the end of the financial year in March.