AUCKLAND, NEW ZEALAND – Dairy giant Fonterra has announced plans to outsource jobs from its Waikato headquarters to India and the Philippines, resulting in significant job cuts.
The proposed changes were revealed to the central finance staff at the company’s Hamilton office during an operating model review.
Outsourcing for efficiency and cost savings
Andrew Murray, Fonterra’s incoming chief finance officer, stated that the changes involve “co-sourcing elements of our transactional work with an existing partner who has facilities in Bangalore and Manila.”
He explained that this move is aimed at creating financial value for its farmer shareholders by optimizing operational efficiency across the business.
Local stakeholders have expressed concern about the outsourcing plans.
Matthew Zonderop, a Waikato sharemilker and provincial dairy chair for Federated Farmers, voiced his opposition, arguing that the New Zealand cooperative should prioritize local staff.
“We should be keeping that money in New Zealand. That’s what this company is; it’s New Zealand-built, New Zealand-made,” Zonderop stated.
He also noted that new technologies could potentially keep jobs within the country, suggesting AI and tools like Microsoft Co-pilot chat as viable alternatives.
Impact on local jobs and operations
Fonterra staff are also worried about the impact of the outsourcing. An anonymous employee told local media that jobs would be outsourced to global accounting firm Accenture in India, affecting up to 100 finance staff in Hamilton.
According to the staffers, the main reason cited for the outsourcing is cheaper labor costs.
In addition to the proposed outsourcing, Fonterra’s regional sites at Waitoa and Te Rapa will see changes later this year. The closure of four manufacturing plants in October will impact 51 roles, with some employees redeployed and some positions currently vacant.
The consultation on these proposals is set to conclude on Friday, with final decisions on redundancies expected by August 12.
