Tomra layoffs in the New Year confirmed: 200 NZ workers to lose their jobs

The cost-cutting programme will result in 200 New Zealand employees getting laid off, Tomra Food executive vice-president Harald Henriksen said.

Two hundred people will lose their jobs next year at food processor Tomra, with the first layoffs starting a week after New Year’s Day.

The company will shut down Auckland and Hamilton operations but keep “hubs” in Auckland and the Bay of Plenty.

The Herald earlier this month revealed the Norwegian company was cutting its New Zealand-based operations as part of a global cost-reduction exercise.

At the time, it was thought that could result in 100 job redundancies, but now it seems twice as many people will be laid off.

Tomra executive vice-president Harald Henriksen said the new operating model was designed to enhance profitability and customer satisfaction by creating a more responsive organisation.

Tomra intended to merge its fresh food and processed food divisions to create three regional outfits.

One will be for the Americas, another the Asia-Pacific, and another for the rest of the world.

“For the past few years, and especially the past 18 months, the global food sector has faced revenue challenges, increased pressure on order intake and eroding profitability, so we need to be closer to our customers,” Henriksen said.

“Unfortunately, the changes to our businesses will mean the loss of 200 jobs in New Zealand through 2024,” he added.

“We recognise that the timing of this announcement close to Christmas is less than ideal, so we are providing our people in New Zealand with discretionary paid leave during Christmas and the New Year to support and provide job security and a break for that period.”

Henriksen said Tomra would support redeployment and relocation for Tomra staff across the world.

One of Compac's fruit sorting machines in action. Compac owner Tomra is laying off staff amid a global restructure.

People leaving Tomra who have been “confirmed redundant” will all receive redundancy compensation, Henriksen added.

The first redundancies will happen on January 8.

The restructure process will happen over 12 months, with a planned completion by the end of 2024.

Tomra said some staff would stay throughout the year to help with the closure of the current Auckland and Hamilton operations.

“Tomra will continue to retain a permanent NZ-based team of around 150 people in two main hubs of Auckland and the Bay of Plenty, as well as remote teams based close to customers,” said Paul Slupecki, senior vice-president and head of Tomra Fresh Food, based in Melbourne.

Tomra, publicly listed on the Oslo stock exchange, announced a cost-cutting plan when releasing financial results in late October.

The company reiterated it planned to simplify its food business and reduce costs by €30 million (NZ$52.5m).

Tomra also owns fruit sorting company Compac Holdings, which supplies crucial equipment to the kiwifruit industry.