Christchurch bus company Red Bus is to shed 80 jobs.
Under the proposal, 60 drivers and 20 support workers would lose their jobs in a restructuring that would take effect in October.
Red Bus chief executive Paul McNoe said on Monday that the restructure was the result of the company losing contracts earlier this year to operate some routes.
Mr McNoe said the work was still available with other companies, and Red Bus would do what it could to help laid-off staff get jobs elsewhere.
He said Red Bus would still have 320 staff after the restructure.
A union official said there was a good chance bus drivers who lost their jobs in Christchurch would be able to find work at other bus companies.