Foodstuffs Wellington makes 100 people redundant

Monday 4th April 2011

Foodstuffs Wellington is making more than 100 people redundant in the lower North Island as part of a restructuring to save $4 million a year.

The company which organises the supply and distribution for New World, Pak'n'Save and Four Square supermarkets in the Lower North Island employs about 1500 people. The stores are individually owned and they employ more than 10,000 people.

Foodstuffs Wellington chief executive Craig Wilson said the restructuring would result in cost savings of more than $4 million, which would allow the company to be more competitive.

Foodstuffs is a New Zealand owned co-operative, organised into three regions. It competes against Woolworths Australia, operator of Countdown and Woolworths supermarkets. The two major players have about half the supermarket market each.

Wilson said people would be placed in new positions where possible but it was likely more than 100 positions would be affected. Consultation with staff had begun at Silverstream and Palmerston North.

Earlier Foodstuffs' southern region said 230 jobs were lost when it closed its New World supermarket in Redcliffs after the February 22 earthquake.

A New World supermarket in Kaiapoi was also forced to close after the September 4 quake, leaving 34 full-time staff and 52 part-time workers without jobs.

NZPA

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