Those to go include general manager of corporate affairs, Matthew Flugge, the manager of ethical production and trade, Dr Norm Blackman, and the manager of industry relations, Danny Pagoda.

AWI chief executive, Craig Welsh, said the redundancies were part of the next stage of the company's cost reduction strategy to "realign resources towards a marketing focused company and to address the current economic climate".

Mr Welsh thanked Mr Flugge for his six years of service with the company and indicated he would be leaving before the end of the year.

"Matthew has helped navigate the wool industry through some of the most difficult times it has seen," Mr Welsh said.

He also paid tribute to Dr Blackman and Mr Pagoda.

"Their depth of knowledge of the industry has been invaluable to the company, in particular, during the animal welfare issue, dealing with industry representatives as well as the challenges associated with the integration of The Woolmark Company into AWI.

"On behalf of AWI, I wish them well for future."

Mr Welsh said other aspects of the costs reduction strategy would be made public in the near future.