Woolworths closes NZ call centre, moves work to Sydney

About 130 Woolworths workers in Auckland are set to lose their jobs after the supermarket company confirmed it will close its New Zealand customer care operation and fold the work into an existing support network in Sydney. The decision follows a formal consultation with staff and union representatives.

The union Workers First says Woolworths expects to be $4.1 million better off by the 2029 financial year as a result. Woolworths says the aim is to cut duplicated costs so it can invest in lower grocery prices. Those two framings sit side by side: savings for the company, and a promise that shoppers will see the benefit.

The move lands in an election year, when the cost of groceries and the security of local jobs are both live issues for many households. It also raises a wider question about which work stays in New Zealand and which can be done from across the Tasman.

The record

Woolworths New Zealand has confirmed 130 roles are affected. Mark Wolfenden, the company's director of digital and eCommerce, says the decision followed consultation. He says: "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."

So the process produced changes at the edges, but the central plan, closing the Auckland centre and moving the work to Sydney, has gone ahead.

Workers First deputy secretary Rudd Hughes points to the company's recent results, saying Woolworths "has just banked $163 million in earnings from Kiwi shoppers". The union says the company is putting 130 people out of work to save what he calls "pocket change". Those are the union's characterisations, and the company has not accepted them.

One affected worker, who asked not to be identified, says staff spent this year entering information into new systems, including training AI tools. The worker says they now understand that material will be used to train the new Australian representatives.

Open questions

The $4.1 million figure comes from the union, and it is set against the $163 million in earnings the union cites. Does the saving depend on the move to Australia alone, or on other changes too? How much of it is expected to be passed on to shoppers as lower prices, and how would that be measured and reported?

Woolworths says savings will allow "further investment in lower grocery prices". That is a commitment about direction, not a number. Shoppers and the union may both want to know what it will look like on the shelf.

There is also the question raised by the worker: can knowledge of New Zealand products, brands and stores be replicated from another country? The worker says customers often say they are glad to be speaking to someone in New Zealand who understands the issue. Whether service quality holds up is something customers will judge over time.

The use of staff-supplied knowledge to train AI tools and Australian colleagues is a further point. Workers say it feels like their expertise was extracted before they were let go. Woolworths has not, in the material available, responded to that specific claim.

The other side

Woolworths says the decision was difficult. Wolfenden says: "we recognise the significant impact it has on our customer care team members who have served our Kiwi customers with dedication for many years."

The company says its priority is finding other roles for affected staff. It says it is working one-on-one with each person on "genuine redeployment opportunities" across its supermarkets, supply chain and wider business, including ring-fencing vacant roles.

It has brought in specialist career transition providers and is connecting staff with local employers recruiting customer support workers. Counselling is available to staff and their families, alongside redundancy compensation.

The strongest fair case for the company is that large retailers operate on thin margins, that duplicated back-office functions across two countries are a legitimate target for savings, and that lower prices are what many shoppers say they want. The company also says it intends to create new net jobs in New Zealand each year, and points to a workforce of more than 20,000 people.

What happens next

Workers First says its focus now turns to making sure redundancy obligations are met and finding alternative positions for affected workers. The union will be watching how many of the 130 are actually redeployed, and how many leave with redundancy pay only.

Woolworths has not said in this account when the Auckland operation will close or when the Sydney team will take over fully. Those timings will matter to staff planning their next step.

Further ahead, the test is whether promised price investment shows up for shoppers, and whether Woolworths' pledge of net job creation each year is borne out in its own workforce figures.