The Dunedin City Council has taken a $20.6 million contract to run the city's landfill off one of its companies, and handed it to a private contractor.
Infrastructure company Delta has held the contract for the Green Island Landfill since 2003.
The council said it had now awarded an eight-year contract to the private firm Waste Management Limited.
Delta staff were briefed this afternoon, but it was not known how many jobs would be lost.
The council said the new contract would save $500,000 but was decided on quality of service as well as price.
In October last year a whistleblower revealed thousands of power poles managed by Delta and its sister company Aurora were rotting and failing.
A report by Deloitte recommended splitting the companies into separate entities.
