One NZ asks for voluntary redundancies

One NZ's headquarters at Smales Farm on Auckland's North Shore. The tough economic environment has led the company to reduce operational costs, it says. Photo / Chris Keall

By Susan Edmunds for RNZ

One New Zealand is asking staff to consider voluntary redundancy.

Spokesman Matt Flood said it had “joined many other organisations offering or considering voluntary redundancy schemes”.

The tough economic environment had led the company to reduce operational costs and implement productivity tools such as AI (artificial intelligence) to help serve customers, he said.

“We are offering a strong redundancy package for those who choose to take it and are committed to supporting our team through this process.”

It is understood that some staff have concerns about the cuts at a time when the company appears to be spending. One NZ was recently revealed as the naming rights partner of Te Kaha Stadium in Christchurch.

The employment market generally has become much weaker in recent months.

As well as public sector job cuts, which RNZ estimates now top 6000, private businesses have been reducing their headcounts.

Trade Me said in its most recent update that job applications were at a record level in the June quarter, as listings numbers dropped.

There are now 380,889 people on main benefits, up from 351,759 a year ago.

Forecasts are for unemployment to peak between 5.3% and 5.5%, from a rate of 4.3% currently.

Assuming the number of filled jobs remained the same, that would mean an increase of about 170,000 people becoming unemployed.

Independent economist Shamubeel Eaqub said that was possible but he expected unemployment would not peak as high this cycle as in the past because businesses would be loath to let staff go.