The university is considering merging the social work and community development department with sociology and women's studies to create a new department in the university humanities division.
The social work department employs about 10 full-time equivalent staff.
It is understood some staff could lose their jobs as the university tries to reduce a recent $300,000 operating deficit for the department.
Postgraduate social work student Brian Rathbone raised the student group's concerns in a recent letter to humanities acting pro-vice-chancellor Associate Prof Sue Court.
The letter, signed by Mr Rathbone on behalf of himself and 10 other Otago social work students, said the proposed changes might realise only "a relatively small financial saving".
But any cuts could "severely curtail" the department's effectiveness in delivering education and access to qualifications and contribute to the country's social work needs not being met, he said in an interview.
Many social work students were "greatly concerned about the effect that any changes will have on the ability of a small but dedicated department to maintain the quality and depth of the programmes" developed by such "wonderful and professional" staff.
The department had historically not been viewed as a "money-making enterprise".
But someone had to "pick up the pieces, get in among domestic violence, make effective interventions with our young people and families, and work with those who are marginalised, oppressed, left in poverty, or those with distinct communities of interest", he said.
"We hope and pray that those with the power will see sense and see the value and need of this department, including current staff, and that we cannot just put a monetary value on all things as their value goes beyond dollars."
University officials said it was premature to comment further on the restructuring proposal.
