Fonterra is merging three separate business units into a new single operations and trade unit.
The unit will be headed by Gary Romano, formerly the manufacturing and supply chain director.
Fonterra chief executive Andrew Ferrier says the shift will bring about gains in performance for the dairy group.
He says the aim is to make its core business more efficient as well as focusing more attention on the global ingredients business.
A trade business unit has been created called global ingredients & foodservices under Andrei Mikhalevsky.
Fonterra's regional consumer brands business, which have been profitable and offsetting lower commodity prices, will continue to operate as separate units.
Mr Ferrier says he will have two fewer people reporting directly to him, giving him more time to talk to Fonterra's customers.