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

comments closed

Related News

May 21, 2022

Cécile Béliot becomes Bel Group CEO

Food & Drink

Cécile Béliot has assumed the role of Bel Group chief executive officer, following the decision to separate the roles of chairman and CEO. The separation of the functions will enable Bel Group to develop in three areas of healthy snacking. Meanwhile, the company’s former CEO, Antoine Fiévet, has had his mandate renewed as chairman of the board.

May 21, 2022

“Corporate greed and dereliction of duty”: FDA commissioner slammed over infant formula shortage

Food & Drink

US Food and Drug Administration (FDA) Commissioner Dr. Robert Califf was grilled by lawmakers during a House Appropriations subcommittee hearing, where he was slammed over the agency’s handling of the escalating infant formula shortage.

May 21, 2022

Sweegen hails antioxidants and bitter blocking tech a turning point for sugar reduction and healthy aging

Food & Drink

Sweegen is ramping up its efforts to reduce sugar across F&B applications while simultaneously tapping into the benefits of using antioxidants and bitter blocking technology. Speaking to FoodIngredientsFirst, Casey McCormick, vice president of global innovation at Sweegen, says product developers can find a broad range of solutions in Sweegen’s nature-based sweetener systems as brands elevate better-for-you foods.