L'Oreal confirms restructure, management of NZ business moves to Australia

Consultation with staff is under way. Photo / 123RF

L'Oreal's restructure will see the New Zealand operations run out of Australia, the company has confirmed.

The local division of the French cosmetics giant is in consultation with staff over proposed changes to the structure of its New Zealand business.

In recent years L'Oreal NZ has been dual-run out of New Zealand and Melbourne, where its Australian head office is based. However, the change will see the New Zealand business run solely out of Australia from January.

The company maintains it will keep "a very strong footprint in New Zealand" and it would "retain the vast majority" of its employees here.

L'Oreal spokeswoman Tanya Abbott said the company was currently "consulting with a small number of our New Zealand employees."

She is yet to respond to questions about the anticipated number of redundancies.

"We are currently consulting with a small number of our New Zealand employees as we move to a completely aligned structure across all areas of the business, from 1 January 2023. The headquarters will remain in Melbourne, with continued strong local presence in New Zealand via our Auckland office and distribution centre; however, the management of L'Oreal New Zealand will be the full responsibility of an Australian and New Zealand leadership team, based in Australia," said Abbott, L'Oreal NZ corporate communications and public affairs manager.

"We are bringing our New Zealand and Australian teams in closer alignment across all areas of our business. We already work together very closely in some areas and have done for many years."

The NZ arm of L'Oreal employs 230 staff.

Rodrigo Pizarro would continue as chief executive of L'Oreal Australia and New Zealand, she said. He has been in the role for eight years.

Abbott said there would be no changes to L'Oreal's supply and fulfilment in New Zealand.

At the end of 2019, L'Oreal laid off its local sales staff, citing increased competition and "disruption" in the pharmacy market. Two Auckland staff and one each in Tauranga and Wellington were made redundant.

The distribution of its brands to pharmacies across New Zealand was moved to a third-party sales provider.

L'Oreal NZ accounts for the last financial year show the company made $14.5m profit in the year ended December 31.

The company took $1,503,890.40 in government wage subsidies during the height of the Covid-19 pandemic for 224 staff.

A note in its accounts says Covid had a significant impact on operations but since lockdown restrictions were lifted there had been no long-lasting detrimental impact to the business.

New Zealand L'Oreal employees were awarded free company shares worth $155,000 in September 2020 but these will not be allocated until November 2025 - subject to their presence in L'Oreal at that date.