“Fonterra has a clear strategy to drive growth,” said CEO Theo Spierings. “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 review has identified potential opportunities for us to deliver a range of corporate services centrally, reducing duplication and removing layers of management.”
Shares in the company rose by 2.5% on the announcement.
Spierings said the proposed changes would potentially lead to the loss of 300 positions. The proposed changes applied only to positions in Fonterra’s corporate offices in New Zealand. Around 50 roles potentially affected were currently vacant, he said, because of a staff freeze imposed in February. Fonterra employs 17,000 people globally.
If implemented, the proposed changes would provide ongoing savings of $65 million a year, before restructuring costs. According to the company, most of these savings would be reinvested to support Fonterra’s growth priorities. These savings would be additional to the $60 million in cost savings Fonterra has already committed to deliver this year.
