New Zealand’s largest energy generator, Meridian Energy, has announced plans to cut jobs as part of a proposal shared with staff today.
A shocked Christchurch employee told chrislynchmedia.com, “We didn’t expect this at all.”
The company did not specify the exact number of roles that would be affected, but in a statement to chrislynchmedia.com explained that a new operating model had been presented to employees in its retail business unit, which manages both the Meridian and Powershop brands.
According to the proposal, several roles will be disestablished, with new and different positions introduced.
Meridian Energy said, “If the proposal is confirmed, we are committed to redeploying people into new roles where possible. Overall, the net reduction of roles is expected to be approximately 8% of current retail employees.”
The company said the proposed changes are part of a broader move toward a more agile retail business model, following a successful trial of this approach over the past year.
Chief Customer Officer Lisa Hannifin acknowledged the impact of the changes on staff, but said the shift was crucial for the future of both the Meridian and Powershop brands.
Lisa Hannifin Chief Customer Officer, Meridian Energy
“While we have a lot to be proud of – both brands are highly rated by consumers and we are New Zealand’s largest retailer by sales volume – we need to adapt if we are to continue to succeed in what is a rapidly changing and highly competitive retail market,” Hannifin said.
She added the company must evolve to meet changing customer expectations. “Customers expect more and have an increasing range of options for how and when they use energy. We need to relentlessly find ways to deliver value back to customers, saving them time and money. We need to understand customer needs and quickly turn ideas and concepts into products and experiences that customers love. All of this requires a reset of our retail business, and that’s what this proposal is about.”
Hannifin acknowledged the challenge for employees but said there were also new opportunities ahead. “It’s a big change for our people, but I think it’s also an exciting one. It’s a different way of working, but with that comes a lot of new opportunities. We’re asking our people to get behind this change, but we’re also supporting them through what I recognise is a period of uncertainty, which can be difficult.”
The deadline for employee feedback on the proposal is 8 October, with a final decision expected on 24 October.
Any new roles are anticipated to be in place by the end of the year.
In August, Meridian Energy reported a massive surge in its financial performance, with net profit after tax skyrocketing to $429 million for the year ending 30 June 2024—more than quadrupling from $95 million the previous year.
The increase was accompanied by a significant rise in operating cash flows, which climbed to $667 million, up from $509 million.
A key factor in the profit increase was net gains on hedge instruments, which amounted to $249 million for the 2024 financial year.
