Fonterra axes 523 jobs in cost-cutting exercise

New Zealand dairy company Fonterra is making 523 job cuts in big productivity and cost-cutting drive across the organisation globally.The decision came in after business review aimed at developing initiatives for generating cash flow and enhancing efficiency.The job cuts will entail a one-off cost of NZ$12 - NZ$15 million, but the company is expected to make on-going payroll savings of approximately NZ$55 – NZ$60 million annually, said a statement from the company.This will take place starting 5 August, and consultation on "new business structures" will affect various departments such as administration , consumer, research and development, communications, procurement and other operations. The marketing department will also be affected. When reached by Marketing, a Fonterra spokesperson said that she could not comment on the affected markets or if job cuts would be made in its marketing team.The company has more than 2,500 staff working in 13 offices in Asia. Its Singapore office also has regional duties for Southeast Asia.Theo Spierings, chief executive officer, said,“Reducing the number of roles in our business isn’t about individual competency; it is about continually improving the way we deliver performance." According to Fonterra, the affected staff will begin to leave the company in September.