200 jobs to go at Tātaki Auckland Unlimited

Two-hundred jobs are to go from the agency responsible for Auckland’s economic development and for operating big ticket attractions including the zoo, stadiums and the art gallery.

Staff at Tātaki Auckland Unlimited (TAU) received the news on Tuesday from chief executive Nick Hill via an all-staff video call and email.

This latest round of job losses comes on the heels of Auckland Council announcing 160 job cuts last week, which includes 68 vacant roles that will be disestablished.

Also responsible for Auckland’s event attraction and tourism marketing, Tātaki Auckland Unlimited (TAU) is facing a $44 million budget cut as part of cost cuts to be made across the Auckland Council group for the 2023/24 budget.

READ MORE:
* Auckland Council says 160 jobs are for the chop – union estimates lower
* Councillors consider ‘completely bonkers’ pay rise for CCO directors
* About 150 jobs to go at Auckland Transport

The latest forecast puts the gap between council revenue and costs at $375 million for the year, beginning July 1.

Hill said that the mayor’s December Letter of Expectation asked the council-controlled organisation to deliver operating cost savings of $27.5m for the next financial year by reducing some economic development and destination activity.

Subsequently, the proposed annual budget put to the public for consultation proposed operating cost cuts of $44.5m from TAU.

Hill and TAU board chair, Vicki Salmon, presented three budget cut scenarios to Auckland councillors earlier in May, outlining cuts of $27.5m, $37.5m and $44.5m. The 200 job cuts would be the result of a $37.5m budget cut.

Hill said the 200 job losses is the outcome of a “mid-scenario” of a $37.5m cut and includes some existing vacancies.

Auckland councillors are due to decide on a revised budget on June 8 and TAU will start a consultation process with affected staff once the budget is confirmed.

Hill said he, the TAU board and leadership team are committed to supporting staff through the extended time of uncertainty.

“As an organisation we are on-track to deliver post-merger efficiencies of well over $16 million,” he said.

“Work is underway on new revenue streams to decrease our reliance on ratepayer funding, greater utilisation of our venues and facilities, integrated programming, greater use of shared services with the council group, and system simplification, standardisation and automation.” .

The organisation has undergone considerable change since it was formed in December 2020 when Regional Facilities Auckland was merged with Auckland Tourism Events and Economic Development.

Since then, staff have dealt with the impacts of the pandemic – including overseeing shuttered regional facilities and delivering $85m of Covid-19 government support to businesses – as well as natural disasters and economic pressures, he said.

“We are deeply aware of the cumulative effect of this ongoing period of change and uncertainty for our people and are committed to supporting our staff through this time.”

The organisation has 1021 full-time equivalent staff budgeted for in the current financial year and 13 positions have already been made redundant.

Meanwhile, Auckland Transport (AT) has been consulting with staff on plans to cut 150 jobs.

A spokesperson for AT said last week that the agency’s leadership team is reviewing feedback on proposed changes and staff will hear final decisions by the end of May, with changes to take effect from July 1.

Council agency Eke Panuku has already completed a change process with 16 jobs cut, some of which were vacant roles which won’t be filled.