Monday, April 22, 2024

Synlait looking to cut staff by 15%

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Synlait Milk is looking to cut 15% of its staff to reset the business and generate savings of approximately $10 million to $12m a year. “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. This is not just a cost out exercise, it is a complete reset of how we operate as a business,” chief executive John Penno said.
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Synlait Milk is looking to cut 15% of its staff to reset the business and generate savings of approximately $10 million to $12m a year.

“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. This is not just a cost out exercise, it is a complete reset of how we operate as a business,” chief executive John Penno said.

The company is discussing the proposed changes with impacted team members and union representatives. The consultation process will take place over the next two weeks. According to the website, Synlait is made up of 1000 people and more than 280 milk suppliers.

A further update will be provided along with Synlait’s full-year 2021 results on September 27.

According to Penno, the aim is to “remove any unhelpful hierarchy from the organisation to ensure staff have the information, resources and freedom to act as they need to, to do their jobs every day”.

Synalit has said it expects to report a net loss of between $20m and $30m in the year that ended July 31.

The company has been grappling with ongoing shipping delays, lower prices for ingredient products and has taken a more conservative approach to year-end inventory volumes and valuation.

It has also been hurt by troubles at a2 Milk. Synlait has an exclusive supply rights deal with a2 Milk for baby formula that is in place until 2023. A2 Milk, however, has been hit by a dramatic drop in sales due to ongoing travel disruptions.

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