Following a review of its operating footprint, it had proposed to discontinue permanent work-from-home, customer-facing contact centre roles across the country.
These would transition to flexible office-based roles in Auckland.
Johnston said this formed part of a wider proposed change to Tower’s operating model.
The proposed changes would result in a net reduction of about 46 roles, he said.
“We recognise this proposed change may be difficult for some of our people, and we’re committed to supporting them through it.”
Johnston said consultation began on Thursday. The Rotorua office lease was due to end in April.
“We will offer support including relocation options and access to career development and wellbeing services.”
Johnston said it moved to its current Rotorua location in 2019 and was proud to have been part of the community for many decades.
“While our physical presence is changing, our commitment to Rotorua is not.”
Johnston said it would continue to support customers across the region through its digital and telephone service channels, and “Rotorua remains an important community for Tower“.
Tower Insurance chief executive Paul Johnston. Photo / Supplied
“We are grateful to our Rotorua team for their contribution over many years and remain committed to ensuring our customers here continue to receive excellent insurance services and support.”
Rotorua MP Todd McClay said the insurer’s proposed Rotorua office closure was unwelcome news and would be “deeply disappointing” for the local staff affected.
“The shift toward online processes and AI is impacting businesses across New Zealand, and Rotorua is no exception to these broader changes.”
He said despite this, business confidence in Rotorua was generally returning.
“Rotorua remains an attractive location for business and investment, with clear signs that our local economy is gaining momentum.
“Recent announcements have seen several new businesses establish operations in our city, creating more than 100 jobs in recent months.”
He urged Tower to conduct a “fair and transparent process during this restructure”, prioritising support for affected employees and “exploring every opportunity to retain as many jobs as possible in Rotorua”.
Rotorua Mayor Tania Tapsell said she felt for workers impacted by the proposed closure of Rotorua’s Tower Insurance office. Photo / Laura Smith
Rotorua Mayor Tania Tapsell said the Rotorua Lakes Council felt for any local workers that may be impacted and hoped they could transition well into other opportunities in Rotorua.
“As a council we’re continuing to invest in our inner city and to support economic development.”
Tapsell said RotoruaNZ and the Rotorua Business Chamber carried outregular surveys that showed overall, businesses were “feeling strong confidence for the next 12 months”.
“Although it’s very sad to see the proposal from Tower Insurance, we’re still ambitious for the future of Rotorua.”
Tapsell said the council was working hard to support local jobs.
“We’re focused on more positive change and exciting investment for the inner city in the near future.”
The latest Rotorua Business Pulse Survey, conducted in October and released in December, found 60% of respondents believed Rotorua’s economic situation would be better in a year, up from 30% at the last survey in April.
Megan Wilson is a health and general news reporter for the Bay of Plenty Times and the Rotorua Daily Post. She has been a journalist since 2021.