A subsidiary company of the Dunedin City Council has told staff it is cutting 23 jobs.
The final figure from the council's infrastructure services company, Delta, is lower than the 30 redundancies originally proposed.
The 23 jobs are going from Delta's Dunedin-based roading and drainage units because local and central governments and private developers are cutting back spending.
In a statement on Friday, Delta says it decided to reduce the number of jobs to go after feedback from staff and their unions.
The company employs about 650 staff from Invercargill to Nelson and last year made a $5 million profit.
It says the staff affected all have the chance to apply for some new roles being created in the restructuring, and other unfilled positions in its greenspace and construction divisions.
Chief executive Grady Cameron says there are 27 vacancies in those divisions.