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Fonterra: job losses mount

Fonterra has provided a further update on its business review. Chief Executive Theo Spierings said the purpose of the review was to ensure that Fonterra remains well positioned to compete in a rapidly changing global dairy market. Reports in New Zealand Media indicate that a further 230 job losses have been announced, following the 523 […]

Fonterra has provided a further update on its business review. Chief Executive Theo Spierings said the purpose of the review was to ensure that Fonterra remains well positioned to compete in a rapidly changing global dairy market.

Reports in New Zealand Media indicate that a further 230 job losses have been announced, following the 523 redundancies announced in July.

The company said that one-off savings generated by changes the co-operative is making during the business review, such as improving working capital, have already enabled it to support its farmers during challenging market conditions.

The review is an on-going process that looks at the entire business to identify potential areas where the co-operative can find more efficiencies and improve future performance. This has included a reduction of roles across the Co-operative which to date totals 750 roles.

“We have great people, but we have to make tough decisions to ensure Fonterra remains competitive in this environment. We will continue to fine-tune our organisation to ensure we best support the initiatives identified by our business review,” Spierings said.

“Our business is looking to the future with the momentum, energy and solid plans needed to keep improving performance.”