Sanitarium proposes cutting 49 jobs, will axe some breakfast cereals

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Photo: Supplied / Sanitarium

The breakfast food brand Sanitarium is proposing to axe 49 jobs in a move to cut down cereal options.

The company announced it would stop making muesli, granola, flake, clusters, and puff cereal in June next year to cater more to local demand.

Its New Zealand general manager, Michael Barton said the sales for the cancelled products made up just ten percent of total sales and had declined over several years.

He said 80 percent of Kiwis had a traditional flaked cereal, a portable liquid breakfast, or mainly a hot drink in the morning – alluding to their popular cereal options and the UP&GO products.

To sustain the production of the proposed cancelled products, Barton said Sanitarium would need a $28 million building and a plant upgrade, “which is not viable in view of changing consumer preferences and declining sales for this type of cereal format”.

“If the proposal proceeds, it would mean the loss of 49 roles across manufacturing, logistics and head office,” Barton said.

He reassured the company’s staples llike Skippy Cornflakes, Ricies, Weet-bix, and Marmite would not be included in the cuts.

Barton said it was still in the consultation period and working alongside staff to ensure they were supported during the “unsettling and challenging time”.

“If the proposal goes ahead, staff impacted by the change would receive full entitlements, financial and personal counselling support, along with career support and advice to transition to other employment, if they are unable to transfer to other roles within the company,” he said.