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- Release Date: 01/05/13 14:03
- Summary: GENERAL: FSF: FONTERRA BEGINS CONSULTATION ON REVIEW OF SUPPORT SERVICES
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FSF
01/05/2013 12:03
GENERAL
REL: 1203 HRS Fonterra Shareholders' Fund (NS)
GENERAL: FSF: FONTERRA BEGINS CONSULTATION ON REVIEW OF SUPPORT SERVICES
Fonterra Co-operative Group Limited today announced that it was conducting a
review of its Support Services in New Zealand and would begin consulting with
employees on proposed changes.
CEO Theo Spierings said the proposed changes were designed to enable Fonterra
to deliver its growth strategy.
"Fonterra has a clear strategy to drive growth," said Mr 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."
Mr 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 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. 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.
End CA:00235731 For:FSF Type:GENERAL Time:2013-05-01 12:03:38
