More Fonterra job cuts have raised questions about whether the dairy giant will need all the space it has leased in new upmarket Auckland headquarters.
Fonterra was due to move more than 1000 staff into the new HQ on Fanshawe St but today it announced 750 job cuts, up from a previously announced figure of 523, resulting in savings of $103 million a year.
The business is to shift staff from its Princes St headquarters off Shortland St, down towards the waterfront to a new purpose-built premises on the corner of Fanshawe St and Halsey St.
The new building is nearing completion and well before the job cuts, Fonterra took on a 15-year lease with two eight-year rights of renewal.
Shane Solly, portfolio manager and research analyst at Harbour Asset Management, said the job cuts certainly raised issued about the amount of space Fonterra would now need.
"Fonterra's productivity push may reduce their head office space requirements. Modern office work practices might also result in lower work space requirements," Solly said.
However Chris Dibble of Colliers International, said Auckland office space was in extremely short supply, particularly in the best A-grade buildings.