Consequently, Arla will be organised in a more efficient way, to ensure a competitive milk price to cooperative owners and to prepare the organisation for further growth, according to the company.
Employees around the world are being briefed about structural changes in Arla Foods. The changes aim to reduce the complexity in the organisation, ensuring clear roles and responsibilities and leveraging synergies in scale.
Arla will discontinue approximately 250 administrative positions globally before the end of 2012, and approximately 150 administrative positions will restructured within the organisation.
Arla will reduce its spend on market research and analysis activities as well as procurement costs on packaging and other materials. In total, the changes are expected to reduce Arla’s annual cost by 500 million DKK going forward.
CEO, Peder Tuborgh, said: “It’s a long time since Arla has had the opportunity to really exploit the synergies that always arise when two large companies, each with their integrated production and administration, join forces.
“Even the most recent mergers with the Swedish Milko and the German Hansa have not been large enough to trigger radical efficiency measures throughout the company.
“Therefore, this project aims to ensure that Arla stays competitive by reducing costs and complexity of our business model – and thereby prepare ourselves for further growth.”
Source: Arla Foods
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