New Zealand dairy group Fonterra is to cut around 300 corporate jobs as part of cost cuts across the business.
The co-operative said today (1 May) the proposed changes will reduce duplication and remove layers of management. The move forms part of a review of its support services in the country, the company said.
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CEO Theo Spierings said the changes were designed to enable Fonterra to deliver its growth strategy.
“Fonterra has a clear strategy to drive growth. 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.”
The job cuts will apply to positions in Fonterra’s corporate offices in New Zealand. Around 50 of those are vacant due to a staff freeze imposed in February.
If implemented, the changes are expected to provide ongoing savings of $65m a year, before restructuring costs. These are in addition to the $60m in cost savings Fonterra has already committed to deliver this year.
The company said the savings would be reinvested to “support Fonterra’s growth priorities”.
