13 Jun 2013

Harper Collins cuts NZ jobs

7:58 pm on 13 June 2013

One of the country's biggest publishers is cutting staff as it tries to cope in what it says is an increasingly challenging market.

Auckland-based Harper Collins is moving its distribution factory to Sydney, affecting staff in the warehouse, finance, customer services and distribution departments.

The sales, marketing and publishing side of the operation will remain in New Zealand.

The company's spokesperson is not saying how many jobs will be lost as a result.

Harper Collins says growing demand for cheap books from overseas websites, a rise in digital sales,and printing and shipping costs are behind the move to cut costs and amalgamate operations with Australia.

Booksellers New Zealand chief executive Lincoln Gould says it's hard to compete with overseas websites where consumers don't have to pay GST.

He says the Government has not worked out how to enforce the collection of online, offshore retailers and that presents an immediate 15% challenge in terms of the price of books in New Zealand.

Book sales here are declining by 18 - 19% each year.