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A slack housing market both here and abroad has resulted in 28 staff losing their jobs at Fisher and Paykel Appliances' Mosgiel manufacturing plant.
The staff cuts were "across the board" at the Otago plant, which produces cookware and dishwashers, the company said.
Fisher and Paykel vice-president of public relations Paul Brockett said the main reason for the job losses was housing market downturns in the United States, Australia and New Zealand.
This had impacted on the company's cooking appliance sales, he said.
The introduction of more efficient manufacturing processes (already in use at the company's Italian and US factories) had also reduced the number of manufacturing staff required.
"The company reached a trigger point where it was uneconomical to keep staff on... we have had to realign the staff numbers to reflect these ongoing efficiency gains," he told the Otago Daily Times.
Dunedin Chamber of Commerce chief executive John Christie said he was not surprised to hear about the job losses, which were announced on Friday.
"The high dollar and increasing manufacturing costs are making it difficult for larger companies.
"We hope it's a temporary fluctuation."
Dunedin's "reasonably good" labour market meant workers had a fair chance of finding work, he said.
- NZPA
