BULLA Dairy Foods’ new chief says the retrenchment of 13 employees at its Colac factory was “of vital importance for the company to move forward”.
Managers and administrative staff who had been with the company for up to 30 years arrived at work Friday to learn they no longer had jobs.
A spokeswoman for Bulla said Colac-based company director Justin Downey had “decided to step down from Bulla’s executive team to pursue other opportunities” but he would remain on Bulla Dairy Foods’ board.
Bulla announced in a statement to the Colac Herald that the company had made “a number of managerial and administrative redundancies” with a total of 31 roles axed at its head office in Melbourne and production sites.
The company’s statement said the decision to cut mid-management roles was “part of an organisational redesign process that Bulla committed to earlier this year”.
“The changes reflect current market conditions and recognition of the need to become more competitive,” the statement said.
“This process took into account organisation structure, capability and governance frameworks and will see the business move into a new growth phase underpinned by innovation.
“These changes will include 31 roles made redundant across management and administration with 17 roles at Bulla’s head office in Derrimut, 13 at their primary manufacturing facilities in Colac and one at their Dandenong site.”
Bulla Dairy Foods’ Allan Hood, who became the company’s permanent chief executive officer two weeks ago, said it was “a difficult decision to make, but of vital importance for the company to move forward”.
“Being a family-owned business we place great value on our employees who have shown continued dedication and commitment to their roles,” Mr Hood said.
“After a rigorous review process, it is with sadness that we announce these adjustments to our work force.
“We have provided company-wide updates and have continued to be transparent about this process and its potential implications.
“The future for iconic Australian businesses like ours hinges upon a combination of product innovation and new technologies, tapping into consumer trends and investment in world class plant and equipment,” he said.
“We are extremely optimistic about the future of Bulla and feel that a refreshed structure will enable us to continue to deliver Australia’s best quality dairy foods long into the future.”