Zespri headquarters at Mount Maunganui. Photo / Talia Parker
“Future-proofing changes” at grower-owned kiwifruit marketer Zespri were “inevitable”, a Tauranga business leader says.
The Mount Maunganui-headquartered company, which posted a $155.2 million profit last season, has proposed to cut up to 135 roles.
Zespri chief executive officer Jason Te Brake announced on Wednesday that the business had started consulting with staff about a restructure proposal.
His statement said the proposed changes could result in the loss of about 65 roles, and not replacing about 70 vacant roles.
He said the company needed a “refreshed approach” to continue delivering value, and aimed to “create a simpler, more focused business”.
“It’s important to note that while we will reduce roles overall, we also need to invest in different strategic capabilities for the longer term.”
Staff consultation was expected to run until early October.
Zespri would also consult and consider the views of industry partners, as the changes would affect some services it provided.
Te Brake, who took the helm in May 2024, said the proposed changes followed Zespri’s recent executive leadership restructure, a “refresh” of its organisational values, and would build on the development of the company’s 2035 strategy.
“We are now taking further steps to ensure our resourcing reflects our strategic priorities.“
The Bay of Plenty Times sought more information about the roles that could be cut, and the services that would be impacted if these changes go ahead.
Zespri was also asked for more details about the investment for “different strategic capabilities”.
A Zespri spokeswoman said: “At this time our focus is on consulting with staff, and we’ll have more to say once these consultations have taken place.”
The announcement came days after Te Brake released Zespri’s first full forecasted grower returns for the 2025-26 season, saying the company was on track to “deliver strong value back to growers”.
It predicted record returns for most varieties. This followed an indicative forecast in June of a $248-$258m profit for the season, on the back of “another bumper crop”.
Tauranga Business Chamber chief executive Matt Cowley said Zespri’s new leadership had recently tackled significant strategic issues, which suggested “future-proofing changes were inevitable”.
Cowley said stakeholders and partners would be eager to understand the new direction and what it would mean for the wider industry and the economy.
“Job losses are never great news for the economy, due to their flow-on effects.
“Zespri is full of talented people, and the impacted staff are likely to find employment soon enough as our economy shows positive signs of recovery.”
New Zealand Kiwifruit Growers Association chief executive Colin Bond said the association advocated for New Zealand kiwifruit growers to be the “most successful and future-ready producers” in the world.
“To ensure this, all industry partners need to align with a strategy focused on delivering the best long-term value possible, both now and in the future.”
Zespri had “successfully delivered” increasing value for kiwifruit over recent years, as evident in the recent forecast for the 2025-26 season, he said.
“We are confident the rollout of their refreshed strategy will continue to place this value at the heart of their decision-making.”
Tauranga Mayor Mahé Drysdale said it was always hard to hear of more potential job losses in the city, and acknowledged it would be a “difficult time” for everyone involved.
“The kiwifruit sector was a huge economic driver for the sub-region’s economy.
“I can understand the need for Zespri to take prudent steps to create efficiencies so that the business continues to be successful and sustainable long term.”
Zespri is 100% owned by current and former kiwifruit growers, and has a global team of more than 900 people based at its Maunganui Rd head office and throughout Asia, Europe and the Americas.
The company works with 2800 growers in New Zealand and 1500 growers offshore to provide consumers with Zespri Green, Zespri RubyRed and SunGold kiwifruit.
Zespri is not the first Tauranga business or organisation this year to announce a major restructure, with significant job losses.
In early June, Ballance Agri-Nutrients chief executive Kelvin Wickham confirmed the company’s plans to end its Mount Maunganui manufacturing operations, resulting in the loss of 60 jobs.
Also in June, The Tauranga City Council announced a leadership review that could result in further job losses, after 98 jobs were already cut.
Sandra Conchie is a senior journalist at the Bay of Plenty Times and Rotorua Daily Post, who has been a journalist for 25 years. She mainly covers police, court and other justice stories, as well as general news. She has been a Canon Media Awards regional/community reporter of the year.