Wellington City Council is proposing wide-ranging redundancies to staff.
It is understood the proposals could mean dozens of job cuts among multiple teams.
The proposals could affect about 50 people, RNZ understands, including those from the Economic and Engagement, Creative Capital, Property, Planning and Environment teams.
Staff have been called into both group and individual meetings this week, it is understood.
Public Service Association assistant secretary Tom Buckley said more job losses were "the last thing Wellington needed" on top of cuts that had hit the city hard.
"These are people with skills, with experience, and with families to support. They deserve better particularly at a time when the job market is tight.
"This also doesn't make much sense with amalgamation of councils on the cards - this is precisely the wrong time to be doing a restructure like this.
"The PSA is standing by and supporting all those impacted by the proposal and will be urging the council to think again."
Last year chief executive Matt Prosser commissioned Deloitte to analyse the council's processes, as well to achieve rates affordability and improve performance.
The report said the council had 330 more staff than it should, based on the number of full time employees per thousand households.
Wellington city council currently has 1620 full-time employees.
It said through "right shaping" the council workforce, tighter controls on spending, and contract compliance, the council could save up to $79 million over three years.
A Wellington city council spokesperson confirmed staff were being consulted on the changes.
The proposals were part of budget reductions - an effort to identify $31.7 million of savings to reduce forecast rates, the spokesperson said.
"As such, it would not be appropriate to comment on the specifics of employment consultation processes while they are underway. Our focus is on ensuring Council kaimahi are supported, heard, and their feedback reflected in any final change decisions.
"At the appropriate time, the public will be informed of the change outcomes."
-RNZ