In a statement issued earlier this week, the company announced that it had completed a consultation with staff after identifying opportunities to reduce duplication and layers of management within the corporate office.
As a result of this staff consultation, the company “will achieve a reduction of approximately 300 roles,” the statement added.
Refocusing spending priorities
Fonterra, which currently employs around 17,000 people worldwide, first targeted the positions when it began the review in May 2013.
It revealed at the time that the proposed changes would provide on-going savings of around NZ$65m per year before restructuring costs, adding that most of these savings would be ploughed back into the company’s “growth priorities.”
Fonterra expects to complete the review by October 2013, once the employees by the review have worked out their notice period.
Commenting, Fonterra CEO Theo Spierings said that the review will allow the company to refocus its spending priorities.
“These reviews are not easy and that makes it all the more impressive that the people involved have been professional, open and honest in their views and supportive of what we’re aiming to achieve,” he said.
“We are investing in growth and it is important to ensure our people are working on the right things and that we are spending our capital on the right priorities. We are confident the review has achieved this.”
New CFO appointed
Alongside the staff cuts, Fonterra has announced the appointment of a new chief finance officer (CFO), and the creation of a new executive role at the company
Lukas Paravicini will join Fonterra as its new CFO after 22 years with Nestlé, and Jacqueline Chow, Arnotts general manager for Australia and New Zealand, will fill the newly created managing director of global brand and nutrition position.
Paravicini and Chow will take up their new roles in September and October 2013 respectively.