AWI will transfer several functions from these offices to India and Sydney, which it says will result in a significant cost saving.

The entire Portugese operation will be transferred to Spain.

The changes have affected 17 staff, five of them in Australia, which is in addition to the earlier redundancies from the Woolmark business of 30 employees around the world.

According to the chief executive of AWI, Craig Welsh, the decision to relocate the interior textiles operation to India will "effectively bring this function closer to where the carpet is manufactured".

"This is about working smarter to give wool growers maximum value for their investment by reducing overheads," Mr Welsh said.

"Restructuring to date has eliminated Woolmark inefficiencies and saved woolgrowers in the order of $5 million per year.

"These savings will be put to use growing longer term demand as part of a new business model.

"Between 85pc and 90pc of woolgrowers' levies are attributable to Merino wool production for the apparel sector.

"So while AWI is still in the interior textiles business, it's smart to be closer to the manufacturing base to ensure resources are maximised for this sector."

Mr Welsh said it made "sound business sense" to locate the market intelligence unit in Sydney to integrate its operations with the rest of the company.

The transfer of the Woolmark licensing and administration functions to Sydney will result in better communication and execution of AWI's business model, AWI says.

"With the imminent roll-out of the new marketing and branding strategies, it is imperative that the various functional areas responsible, work cooperatively and closely," Mr Welsh said.

The Melbourne and Ilkley offices will close by November 30.

Mr Welsh said a new global retail business had emerged in Spain and AWI needed to work more closely with key accounts in retail in that country.

The Lisbon office will cease operations at the end of August.