New Zealand diary company Fonterra has announced that it is to cut 523 jobs as part of its restructuring.
The company currently employs 18,000 staff worldwide – 11,500 of them in New Zealand.
Fonterra said it expected to save up to $60 million a year through the job losses.
Fonterra has had to restructure following a drop in the global prices for milk, an oversupply of milk on the world market and poor payouts to farmers.
For the current season, the upcoming payment forecast is $5.25. Analysts have estimated a dairy farm needs $5.50 to $6 to break even.
This compares with a record payout of $8.40, with a 10 cent dividend on top of that, for the 2013/14 season.