Sciences pro-vice-chancellor Prof Richard Barker confirmed the department of geology was going through a "process of change".
It is proposed that two full-time equivalent (FTE) academic roles be disestablished and technical staffing be reduced by 3.65 FTE roles.
At present, there are 12.85 FTE academic staff and 9.35 FTE technical staff.
Prof Barker said the department had been an important part of the university since its early years, initially within the School of Mines which was formed in 1878, before becoming a stand-alone department in 1926.
"However, the department has experienced significant declining enrolments over the past decade," Prof Barker said.
"With a consequential drop in income, the department has become reliant on a large subsidy from the university to allow it to operate, a situation that is unsustainable."
Prof Barker said he was "aware that a change process like this is difficult for affected staff and potentially unsettling for all university staff and we are supporting staff through this process".
"The expertise that the department contains is a critical part of not only the university’s future but also Aotearoa New Zealand.
"The changes proposed are designed to preserve our core strength in geology while also addressing an urgent financial imperative for the university," he said.
Prof Barker said the proposed management of change may have an impact on staff numbers, but would not affect the current curriculum or students.
Tertiary Education Union organiser Phil Edwards said the union had been kept up to date about the proposed changes.
"From a layperson’s view, you would think that geology offers a great deal which underlines a lot of our understanding of how the world is changing," Mr Edwards said.
"But a lack of government funding means universities have to make harsh decisions, and this is one of them."
He understood that department staff had until next week to make submissions, and they would receive the decision near the end of this month, Mr Edwards said.
The university is going through a troubled time, as management look to make $61.5 million in savings over the next two years.
Earlier this year, 107 staff accepted voluntary redundancies.
Of the 107 accepted, 36 came from health science, 14 from science, eight from commerce, 10 from humanities, 22 from operations and 17 from academic, external engagement, financial services and research divisions.
The university has identified about $38 million in savings, of which about half is made up of staffing changes and paper/programme reviews. The balance is a mixture of service provision changes, efficiency gains and revenue growth.
