Carter Holt Harvey has informed staff it plans to cut around 70 jobs in Rotorua and Tokoroa before Christmas.
Union members are meeting today to discuss the proposals, which would see 18 positions cut at the company's Tokoroa plywood plant and the closure of its Rotorua Profiles plant at a cost of more than 50 jobs including contractors.
The company has cited a fall in demand from export markets in Australia and a lack of new builds in New Zealand as the reason for the redundancies.
EPMU timber industry organiser Ron Angel said the announcement was bleak news just weeks before Christmas.
"This is the last thing people need in the lead up to Christmas. Our members had expected this may be in the pipeline, but there had been hope the Christchurch rebuild would provide enough work to keep things going. Sadly that hasn't eventuated.