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Arla’s Latest Restructuring Measure Renders 140 Jobs Redundant

Published on Oct 31 2018 1:09 PM in Fresh Produce tagged: Trending Posts / Restructuring / Arla Foods / Corporate Operations

Arla’s Latest Restructuring Measure Renders 140 Jobs Redundant

Dairy giant Arla Foods has announced changes its corporate group functions that will render around 140 positions in the company redundant.

The departments affected include marketing, supply chain, finance, international and HR.

The move is a part of Arla’s ongoing transformation programme - dubbed 'Calcium' - which is aimed at streamlining the company’s corporate operations and support functions.

In May of this year, the company’s restructuring measures affected around 350 jobs.

'Tough Decisions'

CEO of Arla Foods, Peder Tuborgh, said, “As always when you restructure and have to part ways with skilled colleagues, we have been confronted with some tough decisions.

"I would like to thank those people who are leaving us for the contribution they have made to Arla Foods.

“We are doing this to create a long-term transformation of our company and to reinstate our international competitiveness when it comes to the milk price we pay to our farmers. I am pleased to see the level of engagement that Calcium is sparking throughout our organisation."

In August of this year, when Arla released its half-yearly results for 2018, it reported that the programme was already contributing positively to the company’s milk price pay-outs to the farmer-owners, and delivering ahead of schedule, with total financial contribution expected to be well beyond the forecasted €50 million this year.

The Impact

Most of the changes in the corporate group functions will impact Arla’s marketing division.

Positions based in the company’s headquarters in Aarhus in Denmark will be affected the most, while a number of positions in the company’s administrative offices in Europe and North America are also likely to be affected.

Tuborgh added, “The changes we are announcing will create a simpler and stronger marketing model for our brands, allowing us to faster address local needs both in our European core markets and our newer markets in Asia and Africa."

© 2018 European Supermarket Magazine – your source for the latest retail news. Article by Dayeeta Das. Click subscribe to sign up to ESM: European Supermarket Magazine.

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