Join our daily newsletter At The Bell to receive exclusive market insights
- Synlait (SM1) proposes a new organisational structure that will see the milk company’s headcount reduced by 15 per cent
- The company says the proposed changes are designed to align leadership and resourcing around key business units, which could generate potential savings of up to $12 million
- The consultation process will take place over the next two weeks and will reset how the business operates
- Company shares last traded at $3.03 on 7 September
Synlait Milk (SM1) has announced it will slash its staff headcount by around 15 per cent.
The company told staff this morning a consultation process is underway to assess its organisational structure. The proposed changes are designed to align leadership and resourcing around its key business units: nutritionals, ingredients and liquids.
Synlait CEO Dr John Penno told staff Synlait has been through a lot of change over the past 12 months.
“This means some areas are now over resources, and some areas are under resourced. We need to review and rest the structure of our business to match our current goals to be successful,” said Dr John Penno.
The company says the proposed structure could generate potential annual savings of up to $12 million, while removing unhelpful hierarchy from the organisation.
The CEO continued, “as part of this, we are also on a journey to transform our culture.”
“This is not just a cost out exercise, it is a complete reset of how we operate as a business.”
The company has begun discussing the proposed changes with impacted team members and union representatives, with the consultation process over the next two weeks.
Synlait says further updates will be provided along with its full year results on September 27.
Company shares last traded at on 7 September.
