At least 240 jobs are at risk after New Zealand's biggest bus company, NZ Bus, lost its contract to operate in south Auckland.
Auckland Transport told the bus operator yesterday there will be a nine-month transitional period in which new contracts will be signed for the area.
NZ Bus chief executive Zane Fulljames told Radio New Zealand the company was disappointed by the news, saying it had put in a strong bid for the contract, but that it would be unwise to speculate about job losses.
"In our south Auckland business, we have 245 staff out of a total 2000.
"We are a very large organisation and we do have the opportunity to redistribute, which certainly we'll be working through with our teams in south Auckland."
Mr Fulljames also told RNZ it wasn't just NZ Bus dealing with a change in contracting currently, and that other businesses would be renegotiating too.
He says this means that despite losing south Auckland, there are other opportunities to pick up other areas.
The company is said to be working with affected staff.