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

Winston Peters questions Fonterra divestment plan

Foreign Affairs Minister Winston Peters has joined the debate around the proposed sale of Fonterra’s consumer and related businesses, demanding answers from the co-operative around its milk supply deal with the buyer, Lactalis.

Editorial: A new era for two co-ops

OPINION: Farmer shareholders of two of New Zealand's largest co-operatives have an important decision to make this month and what they decide could change the landscape of the dairy and meat sectors in New Zealand.

Should co-op sell its consumer brands?

OPINION: As CEO of the Dairy Board in the 1980s I was fortunate to work with a team of experienced and capable executives who made most of the brand investments that created the international consumer business Fonterra inherited. Soprole in Chile was the largest, but there were more than 20 countries where consumer marketing companies were established and Anchor and other brands were successfully launched.

Featured

'One more push' to eliminate FE

Beef + Lamb New Zealand (B+LNZ) is calling on farmers from all regions to take part in the final season of the Sheep Poo Study aiming to build a clearer picture of how facial eczema (FE) affects farms across New Zealand.

Winston Peters questions Fonterra divestment plan

Foreign Affairs Minister Winston Peters has joined the debate around the proposed sale of Fonterra’s consumer and related businesses, demanding answers from the co-operative around its milk supply deal with the buyer, Lactalis.

National

Machinery & Products

» Latest Print Issues Online

The Hound

Quid prod quo?

OPINION: Ageing lefty Chris Trotter reckons that the decision to delay recognition of Palestinian statehood is more than just a fit…

Deadwood

OPINION: A mate of yours truly recently met someone at a BBQ who works at a big consulting firm who spent…

» Connect with Rural News

» eNewsletter

Subscribe to our weekly newsletter