1 May 2013

Units in Fonterra Shareholders Fund rise 3%

7:39 pm on 1 May 2013

Units in Fonterra Shareholders' Fund have risen 3% to more than $8.00 each after the country's largest company planned to axe about 300 corporate jobs.

The units rose 25 cents to $8.06 on Wednesday.

Fonterra estimates the savings of $65 million a year, on top of the $60 million in cost savings it has already committed to deliver this year.

Fonterra chief executive Theo Spierings said he can't say how much the restructuring costs will be until after consultation with staff, a process which will take until the end of May.

Fonterra wants to reallocate resources to areas that make money, he said, and the cuts would allow its overseas branches to be more autonomous and less controlled by support staff in New Zealand.