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Dairy giant Fonterra to cut jobs amid tumbling prices | Dairy giant Fonterra to cut jobs amid tumbling prices |
(about 9 hours later) | |
The world's largest dairy producer, Fonterra, said it plans to cut 523 jobs in the face of tumbling dairy prices. | |
Global prices have fallen by more than 60% since 2014. | Global prices have fallen by more than 60% since 2014. |
The New Zealand-based company said in a statement that the employment cuts were to result in savings of up to NZ$60m ($39m; £25m) per year. | The New Zealand-based company said in a statement that the employment cuts were to result in savings of up to NZ$60m ($39m; £25m) per year. |
The company said the measures were needed to remain strongly competitive in today's global dairy market. | The company said the measures were needed to remain strongly competitive in today's global dairy market. |
"Reducing the number of roles in our business isn't about individual competency; it is about continually improving the way we deliver performance," said Fonterra chief executive Theo Spierings in a statement. | "Reducing the number of roles in our business isn't about individual competency; it is about continually improving the way we deliver performance," said Fonterra chief executive Theo Spierings in a statement. |
Falling profits | Falling profits |
The layoffs are part of an ongoing business review and will come at a one off cost of NZ$12m - $15m, the company said. | The layoffs are part of an ongoing business review and will come at a one off cost of NZ$12m - $15m, the company said. |
Mr Spierings did not give a breakdown of which part of the business the job losses would be in. | Mr Spierings did not give a breakdown of which part of the business the job losses would be in. |
Consultations on further restructuring measures were announced for August. | Consultations on further restructuring measures were announced for August. |
The dairy co-operative is the world's largest milk exporter and Fonterra products are popular across Asia, particularly in China. | The dairy co-operative is the world's largest milk exporter and Fonterra products are popular across Asia, particularly in China. |
The company's profits have been falling for nearly two years in the face of volatile dairy prices. | The company's profits have been falling for nearly two years in the face of volatile dairy prices. |
Shares dropped by 1% in Thursday trade. | Shares dropped by 1% in Thursday trade. |
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