Nelson company may lose up to 170 jobs in restructure
An award-winning natural health products manufacturer in Nelson is proposing to cut up to 170 jobs – around two-thirds of its workforce.
Alaron Products, which won the supreme award at the Nelson Tasman Chamber of Commerce business awards in 2022, began consultations with its staff about the restructuring last Thursday.
It said the proposal could see the loss of up to 170 jobs. It currently employs about 250 people.
The company manufactures health supplements, complementary medicines, therapeutic goods and skincare products under contract to customers.
Alaron managing director Ron Geiger said on Monday that after several years of
considerable growth, the current economic conditions were affecting its customers.
“As a result, the business needs to consolidate and return to pre-Covid staffing levels,” he said.
“Alaron has seen a high level of success in recent times, however, a rapid decline in workload within key market segments is influencing this business need. Having built a strong and capable team this is an extremely difficult time for our entire workforce.”
Geiger said the company was consulting with its staff on the proposal and would make a final decision after receiving feedback. It is understood the company will make a decision on the proposal next week, and that some of the jobs proposed to remain will be subject to a selection process.
The company is based in Tāhunanui. As well as the Chamber of Commerce accolades, the company has been a multiple winner in the Natural Health Products NZ industry awards, as well as in the Deloitte Fast 50 awards recognising rapidly growing companies.
In 2022, the company made headlines for its scheme to incentivise staff to walk or bike to work by paying $5 a day to leave their cars at home.