More than 70 jobs are on the line at the Queenstown Lakes District Council as part of a plan to provide more cost-effective services for ratepayers.
The plan will produce a slimmed down organisation which its proponents say will deliver better results for the community.
Mayor Vanessa van Uden says a commissioned report highlighted inefficiencies, and doing away with them would save $2 million to $3 million a year.
The biggest change involves disestablishing council-controlled organisations responsible for planning and regulatory services and sport and recreation facilities.
The work done by Lakes Environmental and Lakes Leisure would be brought back in house and the chief executives and several staff would lose their jobs.
In all, more than 70 people will either be made redundant or have to apply for new positions.
Staff are being consulted about the proposed changes which the council aims to implement by the end of May.