Wednesday, 01 May 2013 13:54

Fonterra cuts up to 300 jobs

Written by 

Fonterra is cutting up to 300 jobs in its New Zealand corporate offices to save about $65 million a year.

The co-op has had a hiring freeze since February, so about 50 roles potentially affected by the review of its support services in New Zealand are already vacant. Fonterra employs 17000 people globally.

Consultation is starting with employees on the proposed changes which chief executive Theo Spierings says are designed to enable Fonterra to deliver its growth strategy.

"While we are investing in growth, we have to make sure our people are working on the right things and that we are spending our precious capital on the right priorities," says Spierings.

"The review has identified potential opportunities for us to deliver a range of corporate services centrally, reducing duplication and removing layers of management."

Spierings says the proposed changes, which will potentially lead to the loss of 300 positions, will be applied only to positions in Fonterra's corporate offices in New Zealand.

If implemented, the changes would provide on-going savings of $65 million a year, before restructuring costs. Most of these savings would be reinvested to support Fonterra's growth priorities. These savings would be additional to the $60 million in cost savings Fonterra has already committed to deliver this year.

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

Calf feeding boost

Advantage Plastics says it is revolutionising calf meal storage and handling, making farm life easier, safer, and more efficient this…

JD's precision essentials

Farmers across New Zealand are renowned for their productivity and efficiency, always wanting to do more with less, while getting…

» Latest Print Issues Online

The Hound

Be afraid

OPINION: Your old mate hears some of the recent uptick in farmer confidence has slipped since the political polls started…

Trust us!

OPINION: Ther'es a reason politicians rank even lower than John Campbell in the most trusted profession surveys.

» Connect with Rural News

» eNewsletter

Subscribe to our weekly newsletter