AgResearch has laid off nine staff and says more job losses can't be ruled out.
Nine science and technical staff have been given three months' redundancy at the Crown research institute and AgResearch is considering whether to lay off three more. The company has 650 employees.
The institute says it could have laid off more people had it not received an extra $1.8 million in funding from the Foundation for Research, Science & Technology, for the next 18 months.
Chief executive Andrew West says AgResearch will look at redeploying staff where possible.