Synlait proposes to slash jobs by 15% in restructure

AUCKLAND: Synlait Milk says it has started a process with staff to reduce the company’s headcount by about 15% to achieve savings of $10 million to $12 million.

Chief executive John Penno said Synlait, whose previous chief executive Leon Clement left in April, had been through a lot of change over the past 12 months.

‘‘This means some areas are now overresourced, and some areas are underresourced,’’ he said.

‘‘We need to review and reset the structure of our business to match our current goals to be successful.’’

Mr Penno said the company was ‘‘on a journey’’ to transform its culture.

‘‘We need to build teams that are working together with clear roles and responsibilities, and the systems needed to chase the growth we are looking to achieve,’’ he said in a statement.

‘‘This is not just a costout exercise, it is a complete reset of how we operate as a business.’’

Synlait was discussing the proposed changes with affected team members and union representatives.

The consultation process would take place over the next two weeks.

A further update would be provided along with Synlait’s fullyear 2021 results on September 27.

Synlait is closely allied with dairy and infant formula company a2 Milk, which has a 20% stake in the company.

A2 Milk, whose growth has been stifled by the outbreak of Covid19 and increased competition in its key market, China, is Synlait’s biggest customer for infant formula.

In the South Island, Synlait owns Talbot Forest Cheese in Temuka, has a manufacturing plant at Dunsandel and owns Christchurch cheesemaker Dairyworks. —