Thursday, 02 July 2015 14:31

Fonterra consults staff as cuts loom

Written by 
Theo Spierings. Theo Spierings.

Fonterra has started consulting staff on proposals to streamline its business. The co-op is likely to shed hundreds of jobs as part of the review.

In an update, Fonterra chief executive Theo Spierings says the consultation is being conducted globally starting with its procurement, finance, information services, human resources, strategy and legal functions. Other parts of the business will follow in the coming months.

The purpose of the review is to ensure that the company is best placed to respond to a rapidly changing global environment, says Spierings.

The initial phases of the process have looked at the entire business in detail and had identified potential areas, including significant initiatives in procurement, business operations and working capital, where the Co-operative can unlock increased value for its owners.

The cooperative’s leadership is now building these opportunities into defined plans that will drive further improvement across the business, allowing Fonterra to fund its growth strategy and deliver stronger results says Spierings.

“We have the right strategy and the long-term future of dairy is sound, however the world is changing and global dairy markets are increasingly volatile. To keep ahead of the game, we need to be more agile, reduce costs and generate value,” says Spierings.

Fonterra will provide an update on the impact to its business structures following completion of consultation, which is expected later in July.

More like this

Fonterra R&D: Innovation needs more than just PhDs

Common sense and good human judgement are still a key requirement for the super highly qualified staff working at one of New Zealand's largest and most important research facilities - Fonterra's R&D Centre at Palmerston North.

Misguided campaign

OPINION: Last week, Greenpeace lit up Fonterra's Auckland headquarters with 'messages from the common people' - that the sector is polluting the environment.

Featured

Horticulture exports hit $8.4B, surge toward $10B by 2029

A brilliant result and great news for growers and regional economies. That's how horticulture sector leaders are describing the news that sector exports for the year ended June 30 will reach $8.4 billion - an increase of 19% on last year and is forecast to hit close to $10 billion in 2029.

National

Machinery & Products

Farming smarter with technology

The National Fieldays is an annual fixture in the farming calendar: it draws in thousands of farmers, contractors, and industry…

» Latest Print Issues Online

Milking It

110,000 visitors!

OPINION: It's official, Fieldays 2025 clocked 110,000 visitors over the four days.

Sticky situation

OPINION: The Federated Farmers rural advocacy hub at Fieldays has been touted as a great success.

» Connect with Dairy News

» eNewsletter

Subscribe to our weekly newsletter