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Danish Crown is set to cut approximately 500 salaried positions as part of a major restructuring plan to address a financial crisis.
Group CEO Niels Duedahl revealed the plans during a management presentation last Friday 11 October, stating that the company is struggling with excessively high costs in relation to its earnings. The restructuring, along with additional cost-saving measures, aims for an annual cost reduction of DKK 500 million (approx. $73.2 million).
"Danish Crown is in the midst of a crisis, and we are facing sweeping changes," said Duedahl. "Our costs are simply far too high in relation to our earnings. It goes without saying that we are obliged to act on this, and we are now adjusting our organisation and focusing one hundred per cent on the core business to ensure better settlements for the farmers who own Danish Crown."
The company stated that it will need to prioritise its critical core tasks more strictly to regain financial health.
Duedah added: “It affects me deeply, but the planned redundancies are unfortunately necessary if we are to become a financially healthy company again". He also indicated that additional initiatives will be introduced "in the near future" to strengthen the company's focus.
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