Danish Crown will make around 500 positions redundant after finding costs too high in relation to earnings.
CEO Niels Duedahl announced the “organisational adjustment” alongside his management team, highlighting the necessity of “stringently moving forward”.
He added: “Danish Crown is in the midst of a crisis, and we are facing sweeping changes. 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 100% on the core business to ensure better settlements for the farmers who own Danish Crown.”
The company said it expects to see around 500 salaried positions “cut” across Danish Crown, with an estimated annual cost reduction of DKK 500 million (around £56 million).
It also said it would have to prioritise “critical core tasks” to return to financial health.
Duedahl continued, stating that there will be more initiatives in the future to strengthen the company’s focus: “It affects me deeply, but the planned redundancies are unfortunately necessary if we are to become a financially healthy company again. The good news – although difficult to talk about on a day like today – is that Danish Crown are in control of the situation and can resolve the crisis internally.”
Duedahl took over as Group CEO on 1st September 2024, taking charge of the core business and integrating the company’s group functions into the same unit. Danish Crown said he had a “clear goal of streamlining and enhancing Danish Crown”.
He said: “Danish Crown has a long, proud history, and although we are writing a difficult chapter today, we are doing it to be able to write many more positive ones in the future. Behind our problems lies a great untapped potential, which I know a focused organisation can unlock when we make the tough but right decisions.”
Danish Crown will deliver redundancy notices after a negotiation period, and no later than the end of October in Denmark and abroad according to national regulations.
