Fonterra is reportedly set to axe "hundreds" of jobs as part of a major review.
According to the New Zealand Herald, Fonterra CEO Theo Spierings in a media address said the dairy giant is looking at redirecting more staff into sales and marketing roles to help drive up returns. He added a major review of the business – which began in December – would lead to "hundreds of its 1,500 head office and support function staff being laid off".
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He would not however confirm exact numbers until a final review is completed and approved by the board on 1 August.
In March, Fonterra reported a 14% fall in sales to NZ$9.7bn (US$6.9bn) and a profit fall of 16% to NZ$183m.
At the end of last month the dairy company reduced its forecast farmgate milk price for the 2014/15 season to NZ$4.40 (US$3.19) per kgMS, from a previously reduced NZ$4.50 kgMS on the back of lower than expected global commodity prices.
Fonterra was not available to comment at time of publication.
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