Thursday, 02 July 2015 14:31

Fonterra consults staff as cuts loom

Written by 
Theo Spierings. Theo Spierings.

Fonterra has started consulting staff on proposals to streamline its business. The co-op is likely to shed hundreds of jobs as part of the review.

In an update, Fonterra chief executive Theo Spierings says the consultation is being conducted globally starting with its procurement, finance, information services, human resources, strategy and legal functions. Other parts of the business will follow in the coming months.

The purpose of the review is to ensure that the company is best placed to respond to a rapidly changing global environment, says Spierings.

The initial phases of the process have looked at the entire business in detail and had identified potential areas, including significant initiatives in procurement, business operations and working capital, where the Co-operative can unlock increased value for its owners.

The cooperative’s leadership is now building these opportunities into defined plans that will drive further improvement across the business, allowing Fonterra to fund its growth strategy and deliver stronger results says Spierings.

“We have the right strategy and the long-term future of dairy is sound, however the world is changing and global dairy markets are increasingly volatile. To keep ahead of the game, we need to be more agile, reduce costs and generate value,” says Spierings.

Fonterra will provide an update on the impact to its business structures following completion of consultation, which is expected later in July.

More like this

Fonterra posts solid results

Fonterra has delivered a solid half-year result, thanks to higher margins and sales volumes across the co-op's diversified product and category mix.

Featured

Dairy sheep and goat turmoil

Dairy sheep and goat farmers are being told to reduce milk supply as processors face a slump in global demand for their products.

Hurry up and slow down!

OPINION: We have good friends from way back who had lived in one of our major cities for many years.

Editorial: Passage to India

OPINION: Even before the National-led coalition came into power, India was very much at the fore of its trade agenda.

National

Govt urged to reduce ETS units

The Climate Change Commission wants the new Government to reduce NZ Emissions Trading Scheme (ETS) auction volumes as son as…

Dairy sheep, goat woes mount

Dairy sheep and goat farmers are being told to reduce milk supply as processors face a slump in global demand…

Machinery & Products

All-terrain fert spreading mode

Effluent specialists the Samson Group have developed a new double unloading system to help optimise uphill and downhill organic fertiliser…

Can-Am showcases range

Based on industry data collected by the Motor Industry Association, Can-Am is the number one side-by-side manufacturer in New Zealand.

» Latest Print Issues Online

Milking It

Papal visit

OPINION: European farmers are going to extreme lengths to have their message heard.

Thai egg tarts

OPINION: The hustle and bustle of one of Bangkok's most popular fast food outlets may feel a world away from…

» Connect with Dairy News

» eNewsletter

Subscribe to our weekly newsletter