Around 130 Woolworths New Zealand customer care jobs are at risk after the supermarket group proposed shifting the work to Sydney, raising concerns over local employment, remote workers and the growing use of centralised support operations across major businesses.
Affected employees were told about the proposal on September 1, according to Workers First Union, with consultation running until September 15, 2026. Woolworths says no final decision has been made, meaning the positions are at risk rather than already cut.
Woolworths wants to integrate customer care with Sydney
The proposal would close the New Zealand Customer Care Centre and integrate its operation with Woolworths Group’s existing support capability in Sydney, Australia.
Woolworths says using the wider group’s scale, systems and expertise could help serve Kiwi customers while creating a simpler and more sustainable New Zealand business.
The company says it is consulting affected employees and considering their feedback before making a final decision.
Around 130 customer care workers could be affected
Workers First says approximately 130 employees could lose their jobs if Woolworths proceeds with the proposal.
The impact could be particularly significant because the union says many Customer Care team members work remotely, including sole parents. Some live in regions where comparable employment or redeployment opportunities may be limited.
A frontline supermarket vacancy may not necessarily provide an equivalent alternative because it could involve different hours, duties, location and working arrangements.
Union puts potential savings at $4.1 million
Workers First says the proposed change could deliver approximately NZ$4.1 million in savings by FY2029.
The figure comes from the union’s account of the proposal. Workers First deputy secretary Rudd Hughes has questioned whether the savings justify putting more than 100 New Zealand positions at risk.
The union has also argued that affected remote workers could struggle to find comparable jobs if their Woolworths positions disappear.
Woolworths NZ reported $163 million in EBIT
The timing has attracted additional attention because Woolworths New Zealand recently reported stronger earnings.
The New Zealand business recorded NZ$163 million in earnings before interest and tax for the year to June 2026, an increase of 8.8% from the previous year.
EBIT is not the same as net profit because it is calculated before interest and tax, but the increase provides important context to the debate over the proposed restructuring.
Woolworths Group published its latest financial results shortly before the proposal emerged. Its official FY2026 results and investor presentations provide the wider financial picture.
Sydney shift raises questions for Kiwi customers
The proposal is primarily an employment issue, but it could also change where New Zealand customer enquiries are handled.
Workers First has raised concerns about whether an Australia-based operation would have the same familiarity with New Zealand stores, locations and customer issues.
Woolworths says integrating the operation would instead provide access to the group’s established systems and expertise. The company says its priority during consultation is supporting employees and ensuring customers are not affected.
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Woolworths says frontline hiring will continue
Woolworths is highlighting continued investment elsewhere in its New Zealand supermarket business.
The company says approximately 500 new retail roles were introduced in FY2026, with another 500 frontline positions forecast for FY2027. It also plans to open four new stores over the coming year.
That means the proposal is better understood as a potential consolidation of a particular support function rather than a broad withdrawal from New Zealand employment. For affected customer care workers, however, new store positions may not offer comparable roles or working arrangements.
Major employers are reshaping support operations
Woolworths is not the only large Australasian employer reviewing staffing and support functions.
KPMG Australia’s 2026 job cuts have put similar attention on how major employers are responding to costs, demand and changing workforce requirements.
The retail sector is facing its own restructuring pressure. Coles’ corporate job cuts and expanded Accenture arrangement have raised questions about where technology, finance and other support functions should be performed.
The circumstances differ, but the Woolworths proposal highlights the same tension: centralising support operations may reduce costs and duplication while potentially removing locally based jobs.
September 15 consultation deadline is the key date
Affected Woolworths employees have until September 15, 2026 to respond to the proposal, according to Workers First.
Woolworths says it is working one-on-one with team members on their feedback and potential redeployment. Consultation means the proposal could still be modified before the company announces its decision.
Until then, the accurate position is that around 130 Woolworths NZ customer care jobs are at risk. The roles have not yet been confirmed as redundant, and the proposed transfer of the operation to Sydney has not been finalised.
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