Sector News

Arla to cut 500 jobs in restructuring

February 8, 2016
Food & Drink

Arla will cut 500 jobs globally in a restructuring operation aimed at creating a ’simpler, more agile organisation’.

As part of its Good Growth Strategy 2020 ambitions the global dairy business will aim to grow its business in eight global categories and six global markets. It hopes to improve organic revenue growth from 2 per cent to 4 per cent by 2020.

The changes came with Arla and other UK processors facing backlash as heavy price cuts continue to UK dairy farmers. Arla’s business also took a hit in recent days as Tesco confirmed it was switching a significant volume of supply from Arla to Muller.

The reduction of 500 roles ’across its markets and functions’ will come as part of a new company structure in a bid to ’drive efficiencies through faster decision making and execution’.

The firm will hold a consultation process with potentially affected parties and the changes are likely to be confirmed by mid-March.

Peter Giørtz-Carlsen, who currently leads the UK market, will become head of Europe and Tomas Pietrangeli, who currently heads up the Danish market, will succeed Mr Giørtz-Carlsen from March 1.

Peter Giørtz-Carlsen, Executive Vice President, Arla Foods UK said: “This strategic reorganisation will allow our UK business to become more agile and responsive to the dynamic nature of the market.

“We have strengthened the UK business significantly in 2015 with the growth of our own label and branded volumes in all dairy categories, launched the Arla brand and driven cost efficiencies.

“We now need to take the next step which will be to structure our business to capture the full benefits of our global scale.”

He said it was unfortunate a number of roles would be impacted and the firm would work closely to minimise the effect the changes would have on people.

Source: FG Insight

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