North Otago's second largest employer says the number of its staff willing to take voluntary redundancy could prevent further job losses.
Summit Wool Spinners in Oamaru announced in March it would have to restructure and possibly cut jobs, because of a dramatic downturn in orders in the past few months.
The company, which employs 315 staff, says 45 employees have chosen to take voluntary redundancy.
Director Ricky Hammond-Tooke says other workers are considering a proposal to reduce their shifts from 10 hours to nine hours.
Mr Hammond-Tooke says that proposal relies on Summit securing the Government's Job Support Subsidy, the scheme also known as the nine-day working fortnight.
He discussions between the company and the Ministry of Social Development are progressing well.