Following the cut of 523 jobs in July, dairy exporter Fonterra Co-operative Group Limited, has slashed a further 227 positions, with chief executive Theo Spierings warning that there will be more “fine-tuning” ahead.
The cuts have already seen profits lift compared to last year’s poor showing, with the company announcing a net profit of $506 million – up from 183% from the 2014 financial year. Mr Spierings said the improvement seen in the second half of the 2015 financial year were the result of a renewed focus on cash and costs.
Although the company is based in Auckland, it boasts a strong global presence, including several dairy processing facilities throughout Australian, from Wynyard in Tasmania to Wagga Wagga in New South Wales.
The cuts were made as part of a wider, on-going business review, which aims to identify potential efficiencies and improve performance in the future.
Speaking about the 750 job cuts, Mr Spierings said “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.”
Three days prior to the announcement Fonterra Australia opened a new multi-million dollar beverages plant at Cobden, which already produces Western Star butter and the creation of 50 new jobs as a result. The new plant will provide Woolworths Select milk across Victoria for the next 10 years and is a testament to the Co-operative’s commitment to its goal of building an efficient and future-proof business.