Woolworths is cutting about 130 New Zealand jobs and shifting its Auckland customer care operation to Sydney.

Workers First said the decision follows a consultation that began on 1 September and would save Woolworths an extra $4.1 million by the 2029 financial year.

Deputy Secretary Rudd Hughes said the move was difficult to justify after Woolworths reported $163 million in earnings from its New Zealand operation.

“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.”

He said the company had spent more than $400 million on its rebrand while now seeking relatively modest savings from customer care staff.

“With unemployment at 5.6 percent, now is the time to keep Kiwi jobs in New Zealand. It’s a staggeringly self interested decision by Woolworths and New Zealanders should feel betrayed and let down.”

The affected workers are part of the same team involved in industrial action with Woolworths last Christmas after rejecting proposed changes to their employment conditions.

One customer care worker, who asked not to be named, said local knowledge had been central to the service provided to New Zealand customers.

“We’ve built up years of knowledge about the products, the brands and the stores. It’s not something you can replicate from another country.”

The worker also raised concerns about information staff had spent the year putting into new systems.

“We’ve spent this year putting information into new systems, including training AI tools, and now we understand that’s what will be used to train the new Australian reps.”

The worker said staff believed the decision was driven by cost rather than performance.

“This is a successful, world class operation that’s run in New Zealand for years. It’s not being shut down because we did a bad job.”

Woolworths New Zealand confirmed the Auckland operation would be integrated into Woolworths Group’s existing customer support network in Sydney.

Director of Digital and eCommerce Mark Wolfenden said the company had adjusted parts of its proposal following feedback during consultation but would proceed with the core changes.

“Our absolute priority right now is supporting every impacted team member with dignity, care, and clarity.”

Woolworths said it was working individually with affected workers to identify redeployment opportunities across supermarkets, supply chain operations and the wider business, including ring fencing vacant roles.

The company is also offering career transition support, counselling and redundancy compensation.

Woolworths said the move was part of an effort to simplify operations, remove duplicated costs and improve the long term sustainability of its New Zealand business.

Workers First said it would now focus on making sure Woolworths met its redundancy obligations and pursued redeployment wherever possible.