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Canterbury dairy company Synlait Milk is looking to axe about 150 jobs as it moves to restructure its business.
Chief executive John Penno said the move is not just about cost savings but a complete reorganisation and change of the way the 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.
Dunsandel is where the company's homebase, primary manufacturing facility and administration office is located.
But it has a satellite office for administration staff in Christchurch. It also operates Dairyworks in Christchurch and Talbot Forest Cheese based in Temuka.
- additional reporting RNZ