Woolworths to close New Zealand customer care operations, 130 jobs at risk

Woolworths will close its customer care operations in New Zealand and shift the work to its existing customer support network in Sydney, putting around 130 New Zealand jobs at risk.

The supermarket giant confirmed the move to HRD New Zealand, saying it would integrate its Auckland customer care operations into the Woolworths Group's Sydney-based customer support network. The company began consulting employees on the proposed changes on 1 September.

Jobs affected

The closure will affect around 130 roles, according to Workers First Union, which has criticised Woolworths for moving the customer care work offshore.

Rudd Hughes, Workers First Deputy Secretary said, "It's short-sighted, it's greedy, and it's a company turning its back on a country it has extracted mega-profits from."

"Woolworths has just banked $163 million in earnings from Kiwi shoppers, and its response is to put 130 New Zealanders out of work to save pocket change."

The union also claimed affected employees had spent the year implementing new systems and training AI tools that would subsequently be used to train workers in Australia.

Operations move to Sydney

Woolworths said the decision was aimed at simplifying its operations, removing duplicated overheads and supporting the long-term sustainability of its New Zealand business.

Mark Wolfenden, Director of Digital and eCommerce at Woolworths said, "This has been a difficult decision, and we recognise the significant impact it has on our customer care team members who have served our Kiwi customers with dedication for many years."

"We have taken on feedback received during the consultation process, and adjusted our approach accordingly, however we will progress with the core elements of the proposal."

The move means customer care work currently handled from Auckland will instead be managed through Woolworths Group's existing support operations in Sydney.

Support for affected workers

Woolworths said supporting affected employees remains its "absolute priority", with counselling for workers and their families and redundancy compensation among the measures being offered.

The company is also exploring redeployment opportunities across its supermarket network, supply chain and wider business, including ring-fencing vacant positions for affected employees.

"We are working one-on-one with each team member to explore genuine redeployment opportunities across our supermarket network, supply chain, and broader business, including ring-fencing vacant roles," Wolfenden said.

"We have engaged specialist career transition partners and are proactively connecting with local employers who are actively recruiting for customer support talent."

The closure highlights the employment impact of Woolworths' decision to consolidate customer care operations across Australia and New Zealand, with affected Auckland employees now facing redundancy or redeployment as the transition progresses.