New Zealand and Australian employees of infant formula manufacturer Nutricia could be the latest victims of Fonterra's botulism botch-up.
The Mt Wellington-based company says its overseas markets have been slow to recover from the scare and job losses are possible in a cost saving programme it has initiated.
The firm, which is the Australasian subsidiary of French food giant Danone, was hit hard by the August contamination debacle.
It was forced to recall 67,000 cans of its Karicare baby milk brand in New Zealand after Fonterra wrongly suspected that 38 tonnes of whey protein - used to make a range of products including infant formula manufactured by Nutricia - had been contaminated with a botulism-causing bacterium.
"All options are being considered to reduce costs which includes the possibility of reducing the workforce across Australian and New Zealand (ANZ) sites," the company said in a statement this afternoon. "Whilst there have been welcome indications of consumer confidence and trust returning to Nutricia, along with signs of recovery in the domestic market of New Zealand, overseas demand remains slow to respond. As a result, Nutricia ANZ has entered into a consultation process with a number of its employees regarding a proposed restructure of its ANZ operations."