Danish Crown aims to strengthen profitability with comprehensive organisational adjustment

Fewer slaughter pigs and excessive costs are pressuring the competitiveness of Denmark's largest meat company. Danish Crown is planning to make around 500 salaried positions redundant as part of efforts to restore the financial health of the company.

It is necessary to prioritise stringently moving forward, says Group CEO Niels Duedahl, who, along with his management team, today presents a comprehensive organisational adjustment. 

"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 one hundred per cent on the core business to ensure better settlements for the farmers who own Danish Crown," says Niels Duedahl. 

It is expected that around 500 salaried positions will be cut across Danish Crown. The adjustment, along with other cost-saving measures, will provide an annual cost reduction of DKK 500 million. Moving forward, Danish Crown will have to prioritise the most critical core tasks more stringently to return to being a financially healthy company. 

“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," says Niels Duedahl, who also signals that there will be more initiatives in the near future to strengthen the company's focus. 

Since Niels Duedahl took over as Group CEO on 1 September, he has taken charge of the core business and simultaneously integrated all the company's group functions into the same organisational unit – with a clear goal of streamlining and enhancing Danish Crown. 

"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," says Niels Duedahl. 

In larger redundancy rounds in Denmark, legal negotiations must be initiated with employee representatives to limit the extent and ensure conditions for those made redundant. That process begins now. Notices will be delivered after the negotiation period and no later than the end of October in Denmark and abroad according to national regulations.