New Zealand dairy cooperative Fonterra has commenced a process of worker consultations as it looks to boost efficiency across and streamline its business structures.
The company did not confirm the number of jobs to go. A spokesperson for the group told just-food that Fonterra will be "in a position to give numbers" in the mid- to end-July. "We are in consultations now so it would be inappropriate to do so," the spokesperson added.
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The move comes as part of Fonterra's strategic review, announced in March. The review is being carried out on a global level and the first areas of the business under assessment are procurement, finance, information services, human resources, strategy and legal functions.
Fonterra is attempting to increase efficiency in order to raise returns to its farmer owners and unlock cash to reinvest in the business. Fonterra said the "initial phases" of the review had 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 spokesperson said it was not a case of cutting jobs within the group's existing organisational framework and there could potentially be changes to Fonterra's organisational structure. "[Management] are looking at a clean sheet," the spokesperson explained.
"A very small part of what we are doing is rearranging staff to take advantage of those opportunities. They are also looking at how to unlock those pockets of cash, which can be returned to our farmers," the spokesperson added.
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