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Nestle announces job cuts at south Auckland factory

Author
Newstalk ZB Staff ,
Publish Date
Sat, 14 Jul 2018, 6:33AM
Nestle is pulling back on it's New Zealand operations. (Photo: Getty)
Nestle is pulling back on it's New Zealand operations. (Photo: Getty)

Nestle announces job cuts at south Auckland factory

Author
Newstalk ZB Staff ,
Publish Date
Sat, 14 Jul 2018, 6:33AM

The Employers and Manufacturers Association expects more multi-national food companies will reconsider their New Zealand operations.

Nestle has announced it's pulling back manufacturing in New Zealand, and will cut up to 55 jobs at its Wiri factory in South Auckland.

It comes after Cadbury closed its Dunedin factory in March.

Employers and Manufacturers Association's Kim Campbell says Nestle's move isn't unusual as large companies are always rationalising the hundreds of factories they have.

"We are now in a globally connected supply chain and these companies are regularly looking at their brand portfolios, reflecting on the state of the market."

Nestle has also sold several brands such as Oddfellows, Mackintosh, and Heards.

Some of the sold brands will be produced at RJ's in Levin, where Nestle's redundant staff will be offered positions.

Campbell says confectionary production is an extremely tough industry so New Zealand needs to show it's a winner.

"We have a real advantage when we convert our own materials into an entity that is match fit and nimble, and also we need to be smart at adding value to the things that we have a competitive advantage in."

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