Long-running problems in the dairy industry have come to a head, with Fonterra axing just over five hundred jobs.

The dairy giant employs more than 18,000 people, mostly in New Zealand.

It plans to save about $60m a year with the job cuts.

It's not yet known if local staff are affected.

The global dairy trade auction results are at a six-year low.

And New Zealand's dollar isn't faring much better as a result of the dairy downturn.

Prices are about 40% lower than they were last year.