Fonterra innovation centre is likely to see job losses

Fonterra is considering job cuts at its innovation centre in Palmerston North, which employs about 400 people.

But a spokesman said the decisions on the number of any jobs to go was not expected for some time. Restructuring at the centre was being considered as part of a nationwide review of operations and staffing.

The consultation process being undertaken with staff was not expected to finish for several months.

The spokesman's comments came after chairman Henry van der Heyden confirmed a reduction in head count was possible at the centre, whose activities include R&D, support and marketing services.

Speculation that about 100 jobs could go at Palmerston North came as Fonterra confirmed the laying off of 300 workers at three cheese plants.

Fonterra says cost-cutting has helped boost its forecast payout this season from an original estimate of $3.85/kg of milk solids to its latest forecast of $4.07/kg.