Fonterra reveals more cuts

Fonterra reveals more cuts

New Zealand dairy giant Fonterra announced a further 227 job losses today (21 September) as part of its on-going business review, adding to the 523 job cuts announced in July.

Fonterra chief executive Theo Spierings said the cooperative had to make "tough decisions" to remain competitive in an environment of low global dairy prices.

"We will continue to fine-tune our organisation to ensure we best support the initiatives identified by our business review," he said.

The cuts come from across a number of areas of the business areas, including administration, sales – ingredients, consumer, marketing, research and development, communications, health and safety, food safety and quality, group resilience and risk, property, procurement and change management.

Spierings said savings generated by the business review, such as improving working capital, have already enabled the cooperative to support its farmers during "challenging market conditions".

Last month Fonterra warned that current global dairy prices are "unsustainably low" and starting to hit production levels.