The Mental Health Foundation (MHF) says it's proposing cutting 10 jobs - 18 percent of its total workforce - as it reduces costs amid declining fundraising revenue.
"Like many other NGOs (non-governmental organisation) reliant on fundraising, donations and contracts from [the] Government, MHF is grappling with costs rising faster than income. Around 50 percent of our income is from Government contracts for providing health promotion resources, campaigns and programmes," the foundation's chief executive Shaun Robinson told Newshub.
The move follows a 134-role layoff at the Ministry of Health announced earlier this month, where there were fears the restructure could result in the closure of the Suicide Prevention Office. The announcement forced the Government to assure to New Zealanders no such closure would happen.
"We have not had any Government funding cut, but our government-funded contracts have not kept pace with rising costs over a number of years. Alongside this we are facing a decrease in fundraising revenue owing to record inflation and a recession," Robinson said of the MHF's proposal.
"As an organisation, we need to adapt to these challenges and change the way we are organised to ensure our important mahi continues to enable all New Zealanders to enjoy positive mental health and wellbeing.
"The MHF is in the middle of a proposal for change which could result in 10 fewer roles in the organisation. Staff are currently being consulted, therefore during this time we will not be discussing any specifics."
Cuts at the charity come the same week 1000 lay-offs were announced in the public sector as the Government cracks down on spending.
While the Government has assured frontline services wouldn't be affected by the cuts, some charities have been told their funding could come to an end within weeks and others were fearful of losing state financing, according to Otago Daily Times and Stuff reports.