Fonterra will reduce its headcount by more than 500 in a move by the dairy giant that aims to boost cash flow and improve efficiency.
Fonterra said that 523 roles will be “disestablished” following consultation with its central procurement, finance, information services, human resources, strategy and legal team as part of a wider business review.
Fonterra's CEO, Theo Spierings said the news had been unsettling for those affected but the co-operative “had to change if it was to remain strongly competitive in today’s global dairy market”.
The one-off cost of the job cuts would be $12 to $15 million, with ongoing payroll savings of expected to come to around $55 to $60 million per annum.
