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Current Position:Home » News » Agri & Animal Products » Dairy Products » Topic

Arla Foods to eliminate 250 jobs worldwide

Zoom in font  Zoom out font Published: 2012-05-17  Origin: FBR
Core Tip: Swedish-Danish cooperative Arla Foods plans to eliminate 250 jobs worldwide as a part of its restructuring plan to lower its annual costs by DKK500m ($86.16m).
 According to the company, the restructuring will help it to keep up with international competitors and also ensure a competitive milk price to cooperative owners.

The jobs cuts will affect administrative positions globally. The company plans to restructure 150 administrative positions within the organisation.

In addition, Arla will reduce its spend on market research and analysis activities as well as procurement costs on packaging and other materials to achieve the cost savings.

Arla's CEO Peder Tuborgh said that Arla has a responsibility towards all of its cooperative owners and other dairy farmers, who invest their milk and their money in Arla, to make sure that the turnover grows significantly faster than the cost.

"Our international competitors are able to turn ideas into action quicker than before and, therefore, Arla needs a more simple and structured way of working," Tuborgh added.

The company noted that it will offer support and career counseling to all affected employees, in accordance with local legislation.
 
 
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