Upper Hutt mayor Wayne Guppy says workers for Foodstuffs in Wellington are fearful more jobs will be cut as the company consolidates its operations.
The supermarket co-operative - which includes New World, Pak'nSave and Four Square - began merging its upper and lower North Island operations late last year. The head office for all the North Island is based in Auckland.
Twenty-eight people have so far been made redundant in Wellington and nine have lost their jobs in Auckland.
Mr Guppy said on Tuesday he has spoken to staff still at the Silverstream office and they are scared that their jobs may be the next to go.
Foodstuff's North Island's managing director Murray Jordan said while some jobs have been cut, about 400 positions have been created by store openings.
Mr Jordan said some workers will have the choice to re-locate, resign or retire as the merger continues.