FONTERRA Australia is to shed 25 jobs in coming months.
In his weekly newsletter to the dairy company’s suppliers on Friday, Farm Source general manager Matt Watt said the jobs would be removed from Fonterra’s headquarters in Richmond and regional offices.
“Like any business, we’re always looking at ways we can improve our performance and become more efficient,” Mr Watt said.
The move follows an announcement by Fonterra’s New Zealand board in March the company plans to reduce its debt by $NZ800 million by the end of the 2019 financial year, on July 31.
Asset sales announced so far have only contributed about $NZ460 million of that $NZ800 million target.
Fonterra will slash 100 jobs when it closes its Dennington factory on the outskirts of Warrnambool in November.
One source told The Weekly Times only six of those jobs would be transferred to the Cobden plant.
Fonterra Australia is under pressure to sell the Dennington factory but remains adamant it will not put it on the market.
A number of dairy companies are interested in purchasing the site and refitting it for milk processing.