Updated 1.00pm: Fonterra has confirmed it will be laying off hundreds of staff.

Fonterra Chief executive Theo Spierings won't confirm the number of jobs going until a final review is completed and approved by the board.

He says the cooperative wants to redirect more staff into sales roles and into markets to help drive up returns.

The industry is under pressure with poor pay outs, thanks to a weak milk price globally.

A spokesperson for the company has confirmed they've brought in consultants to help them restructure.

It's expected back office support jobs will be cut, although there is a possibility of other jobs being created in front line roles.

The mood was glum at Fieldays when the news broke.

Labour's finance spokesperson Grant Robertson said this is the result of serious issues that have been facing the rural sector for a long time.

"While most farmers I think feel like they can batten down the hatches and weather the storm for a year, any more than that will put a real strain. Not only on farmers but on the community that serves them."