Full Breakdown
Woolworths New Zealand’s Profit Decline, Job Cuts and Growing Political Scrutiny
By Drooid · · How we work
Recent Performance and Impairments
Woolworths New Zealand reported a loss of $32.3 million for 2025 after a steep profit drop in 2023. Revenue rose from $6.5 billion in 2017 to $7.9 billion in 2023—a 22.6 % increase—but net profit fell from a peak of $205 million in 2021 to $73 million in 2023. A $1.6 billion intangible-asset impairment and a $14 million property, plant and equipment write-down tied to the Countdown-to-Woolworths rebranding pushed the 2024 result into the red by $60 million, meaning profit fell by roughly $90 million before impairments were accounted for.
Job Reductions and Operational Changes
In early 2024 the company announced the elimination of 130 customer-care positions in Auckland. Those roles will be merged into Woolworths Group’s central support centre in Sydney after formal consultation with staff and union representatives. The move is presented as part of an efficiency drive aimed at keeping prices low for shoppers.
Sector Scrutiny Ahead of the General Election
Supermarket competition has become a focal point of the upcoming New Zealand general election on November 7. All parties except Act have pledged to address the duopoly of Foodstuffs and Woolworths, citing cost-of-living pressures. Politicians reference a 2022 Commerce Commission study that alleged major supermarkets earned excess profits of more than $1 million per day, a claim contrasted with Woolworths’ recent profit trajectory.
Outlook
Woolworths New Zealand aims to stabilize earnings while navigating heightened regulatory attention and political pressure. The integration of Auckland customer-care staff into Sydney and continued price-keeping strategies will be key factors as the sector faces potential legislative reforms following the November election.