Corporate employees of Woolworths could soon have their jobs offshored to Asia as the supermarket giant seeks to address soaring operational costs. Consultations regarding the proposed changes, which affect some of Woolworths' approximately 10,000 corporate staff in human resources, information technology, and finance, are expected to commence on Wednesday morning.
Currently, there is no indication of the exact number of jobs that will be impacted during the consultation process. Woolworths has confirmed to 7NEWS.com.au that the changes are aimed at reducing the company's costs to maintain low prices for customers.
“Our customers are telling us they need more help managing their budgets as growing inflationary pressures impact the cost of living,” a Woolworths spokesperson said. “To continue our commitment to deliver the dependable low prices and better shopping experiences our customers expect, and to remain competitive with the rapid expansion of international players in the market, we are continuing to transform our business. This includes removing complexity, increasing productivity and efficiency.”
Woolworths has confirmed it has proposed offshoring a number of corporate jobs to Asia as it attempts to ‘transform’ its business approach. Consultations with some of Woolworths’ corporate teams are expected to continue throughout the week as the company presents “proposals to expand our existing global capabilities and managed service partnerships”.
“We have for many years had teams located throughout Asia and longstanding managed service arrangements in place,” Woolworths said. “We regularly review these to ensure we are accessing the best global capabilities and lowering our costs, to ensure we are offering the best value for our customers.”
The move comes as international giants such as Amazon gain momentum in the Australian market by offering cheap and rapidly delivered alternatives. Woolworths has invested billions into transforming its supply chain in Western Sydney to keep pace with online orders.
The supermarket giant hopes this cost-cutting measure can increase its influence on the continent while also reducing costs for customers. “As one of Australia’s largest employers in a dynamic and competitive sector, we consistently reshape our business and find ways to be more efficient, to enable us to continue to drive growth and invest in local communities,” the company said.
Woolworths also expects to open 24 new stores across Australia and New Zealand in the coming year, which are projected to create 2,500 jobs in the sector. This is despite Woolworths’ head Amanda Bardwell warning in April about an impending surge in costs due to conflict in the Middle East.
“The Middle East conflict did not affect shelf prices in quarter three, and the impact on current prices remains limited, but suppliers are navigating significant increases in fuel and fertiliser costs, and we’re hearing from a growing number of them about the need for price increases,” Bardwell said, according to the Australian Financial Review. “We’re still in the very early stages of these impacts, but we expect the pressures to grow, and fresh categories are in the first wave. We’re already seeing some cost increases flowing through to fruit and vegetables, milk and bread. Farmers are particularly exposed to fuel and fertiliser prices. As those input costs persist, grocery products will come under further pressure.”
