Sector News

Arla to cut 140 jobs as part of 400m euro cost-saving plan

November 2, 2018
Consumer Packaged Goods

Arla Foods has announced that it will make 140 roles redundant as part of its ‘Calcium’ cost-saving programme, which aims to deliver €400 million in savings by the end of by the end of 2020.

Earlier this year, the company announced that it would close several UK sites and cut 195 corporate roles across its finance, legal & IT, corporate strategy, member relations, HR and corporate affairs departments as part of the programme, which aims to ‘improve efficiency in all areas of the company.’

The new redundancies will take place across the company’s Marketing, Supply Chain Finance, International and HR units, predominantly at the company’s head office in Aarhus, Denmark, with a smaller number of positions at the company’s administrative offices elsewhere in Europe and North America.

Arla says that the majority of cuts will take place in Arla’s marketing organisation, as the company aims to “simplify its commercial matrix and empower the frontline by securing a higher speed to market.”

CEO of Arla Foods, Peder Tuborgh said: “The changes we are announcing today will create a simpler and stronger marketing model for our brands, allowing us to faster address local needs both in our European core markets and our newer markets in Asia and Africa.

“It is part of our effort to build close relationships with local customers and governments in addressing some of the bigger challenges around health and sustainability.

“As always when you restructure and have to part ways with skilled colleagues, we have been confronted with some tough decisions. I would like to thank those people who are leaving us for the contribution they have made to Arla Foods.

“We are doing this to create a long-term transformation of our company and to reinstate our international competitiveness when it comes to the milk price we pay to our farmers, and I am pleased to see the level of engagement that Calcium is sparking throughout our organisation.

“It is a big part of the reason why the programme is currently delivering ahead of schedule,”

Source: FoodBev

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