South Island dairy company set to axe 150 jobs

South Island dairy company Synlait Milk is looking to axe about 150 jobs as it moves to restructure its business.

Chief executive John Penno says the move is not just about cost savings but a complete reorganisation and change of the way the Canterbury-based company works.

The company employs about 1000 workers and the aim is to cut about 15 percent of the workforce, which will save between $10 million and $12 million a year.

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

"This means some areas are now over-resourced, and some areas are under-resourced," he said.

"We need to review and reset the structure of our business to match our current goals to be successful," he said.

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.

Synlait makes a range of dairy products, but has grown on supplying infant formula to A2 Milk, which has been battered over the past year by Covid related disruptions to its key market, China.

 - additional reporting RNZ

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