Tasman Tanning has made 17 staff redundant with the Covid-19 pandemic causing a significant decrease in orders for finished leather from the automotive and aviation industries.
The company is a major New Zealand producer of finished leather. It has 230 to 240 staff and most of its product is exported.
"Our customers were affected to varying degrees. A lot of them are actually still suffering [in the pandemic]. Some are back in lockdown or have a very significant reduction in demand for product," Tasman Tanning chief executive Neville Dyer said.
The staff members who lost their jobs finished work last week, after a process of consultation that took several weeks.
They were a mixture of long-term and short-term staff and had been on leave for a few weeks. When they returned it was obvious to them that there was not enough work to keep them going.