Up to 20 engineers at Kordia are to be laid off in the coming weeks as the business struggles with lack of demand for its services.
The State-owned company, formerly known as BCL, manages an extensive telecommunications network as well as television and radio transmission infrastructure.
It employs 700 personnel in New Zealand and Australia.
Chief executive Geoff Hunt says the company has just completed two years of investing in the business and now has less need for up to 20 of its 80 engineers.
He says it is simply bad timing that a lack of internal work at Kordia coincides with reduced demand due to the recession.