Fonterra Co-operative Group said about 300 jobs from its head office in Auckland would go after a review of its support services, saving the company $65 million, or $216,666 per position, a year.
Fonterra signalled the job losses when the review started in May. The review is expected to be completed by October once people have worked out notice periods, Fonterra said.
Chief executive Theo Spierings said the review had identified opportunities to reduce duplication and layers of management within the corporate office and opportunities to progress Fonterra's strategy implementation.
"We are investing in growth and it is important to ensure our people are working on the right things and that we are spending our capital on the right priorities,'' he said in a statement. "We are confident the review has achieved this.''
It was the biggest management shakeup under Spierings, who took over from the previous chief executive, Andrew Ferrier, in 2011.