More redundancies at Fonterra

More redundancies at Fonterra

Dairy giant Fonterra, which has been cutting jobs in a bid to generate savings and improve its performance, has made a further wave of redundancies.

Theo Spierings, the chief executive of the world's largest dairy exporter, provided an update on the number of jobs lost as he discussed the group's first-quarter results, which were announced yesterday (16 November).

The New Zealand-based company first announced it was looking to cut jobs in June. The move was part of a wider strategic review of Fonterra's global operations, intended to improve efficiency and unlock cash to raise farmer returns and reinvest in the business.

In July, Fonterra revealed it was to cut 523 posts following a review of its procurement, finance, information, human resources, strategy and legal teams.

Two months later, the company announced a further 227 jobs would go, with cuts from across the business, including administration, ingredient sales, consumer products, R&D and food safety.

just-food understands the move to 835 jobs being lost includes a number of deferred redundancies, with the latest cuts not part of the review.

Fonterra yesterday lifted its forecast range for annual earnings per share amid what it called "the ongoing improvement" in its performance.