Delta chief executive Grady Cameron said yesterday the jobs being made redundant were "a range of construction-related positions", but while their plan to restructure was definite, "the final shape is subject to the outcome of the consultation with affected staff".
The company began the consultation process on Monday and hoped to have a final decision by next Tuesday.
Delta marketing and communications manager Gary Johnson said jobs in other areas such as Dunedin and Christchurch were safe at this stage, but the company was not ruling out cuts there.
Mr Cameron said there were 38 staff in the civil construction and water team, with a total of 110 employees in the Central Otago and Queenstown Lakes area.
He said Delta's "refocusing" was a result of "sustained downturn in property development and reduced local government infrastructure spend".
"Following the global financial crisis, adverse economic conditions here and overseas saw a marked reduction in the demand for civil construction services that has failed to pick up. We expect little or no change in market demand in the near or medium term.
"These factors require us to be highly focused in our operations and align our resources to market demand and growth prospects. We are making difficult decisions to ensure our business remains competitive."
Delta would still have a presence in the Central Otago and Queenstown Lakes area and would continue to provide civil construction services, he said.
The water services provided to the Central Otago District Council would not be affected; nor would any future capital works.
"We understand that the proposal will be unwelcome news for our employees, their families and the local community. In the event that the redundancies are confirmed, we will make every practical effort to assist our employees through the change and where possible offer alternative employment where vacancies exist," he said.
Otago Chamber of Commerce Central Otago advisory board chairman Hugh McIntyre said the news was "obviously disappointing for the area" but declined to comment further as he did not know the background.
