Consultation with staff is underway. Photo / 123RF
L’Oreal’s restructuring will see New Zealand operations leave Australia, the company has confirmed.
The local division of the French cosmetics giant is in consultation with staff on proposed changes to the structure
of its New Zealand operations.
For the past few years, L’Oréal NZ has been managed in both New Zealand and Melbourne, where its Australian headquarters are located. However, the change will see the New Zealand company operate only from Australia from January.
The company maintains that it will retain “a very strong footprint in New Zealand” and would “retain the vast majority” of its employees here.
L’Oreal spokeswoman Tanya Abbott said the company was “currently consulting with a small number of our New Zealand employees”.
She has yet to respond to questions about the expected number of layoffs.
“We are currently consulting with a small number of our New Zealand employees as we transition to a fully aligned structure across all areas of the business, effective January 1, 2023. Head office will remain in Melbourne, with a strong local presence continues in New Zealand through our Auckland office and our distribution centre; however, the management of L’Oréal New Zealand will be under the full responsibility of an Australian and New Zealand management team, based in Australia” said Abbott, head of corporate communications and public affairs at L’Oreal NZ.
“We bring our New Zealand and Australian teams closer together in all areas of our business. We already work closely together in some areas and have done so for many years.”
The New Zealand branch of L’Oréal employs 230 people.
Rodrigo Pizarro would continue as general manager of L’Oreal Australia and New Zealand, she said. He has held the position for eight years.
Abbott said there would be no changes to L’Oréal’s sourcing and fulfillment in New Zealand.
At the end of 2019, L’Oréal laid off its local sales staff, citing increased competition and “disruption” in the pharmacy market. Two employees in Auckland and one in Tauranga and one in Wellington were made redundant.
The distribution of its brands to pharmacies across New Zealand has been transferred to a third-party retail provider.
L’Oreal NZ’s accounts for the last financial year show the company made a profit of $14.5 million in the year ended December 31.
The company received $1,503,890.40 in government wage subsidies at the height of the Covid-19 pandemic for 224 employees.
A note in its accounts says Covid had a significant impact on operations, but since lockdown restrictions were lifted there has been no lasting negative impact on the business.
L’Oréal’s New Zealand employees received free shares in the company worth $155,000 in September 2020, but these will not be awarded until November 2025 – subject to their presence in L’Oréal. Oréal on this date.