A South Gippsland dairy plant will axe more than 30 jobs because of the extended global downturn.
- Dairy manufacturer Viplus is cutting 31 jobs at its Toora factory
- The company says the pandemic-led global downturn is behind the decision
- Community members say the job cuts will have a “domino effect” on other businesses
Viplus Dairy, which manufactures powdered milk products including infant formula, has announced it will make 31 workers redundant.
The company exports to 14 countries, but its biggest market is China.
Viplus Dairy chief executive Jon McNaught said staff had been let go because international markets had not rebounded from the pandemic as quickly as he had hoped.
“Depending on their arrangements, some will finish up soon and get paid out, others will work through their period and finish up during February,” Mr McNaught said.
“Business and economy and the international markets aren’t rebounding as quickly as everyone had hoped.
“I guess we wished we didn’t have to do this and we are going to be losing some very skilled and important people who are central to our business.”
The former Bonlac milk factory began trading as Viplus Dairy in 2012 and has since undergone a $10 million expansion.
Toora supermarket owner Anish Singla said the job losses would have a significant effect on the community.
“It’s devastating news. It’s a small community, and I’ve seen the growth at Viplus in the last few years and losing jobs is mega,” he said.
“It’s 31 people, 31 households and it was a really hard year last year with the coronavirus.
“It has a domino effect on all of the town.”