Norway's Tine To Cut Jobs As Part Of 'Streamlining' Measure
Norwegian dairy cooperative Tine has announced that it is to reduce staff by 400 in a bid to save NOK 1 billion (€100 million) and streamline its operations.
The decision is part of the company's strategy to ensure profitability in the coming years and optimise the use of resources.
Strong growth in imports, changes in consumption patterns and the strong growth of competitors in Norway has placed the co-operative in a challenging situation, it said.
The move is likely to result in an 8% to 10% decline in Norwegian milk production, leading to a significant decline in income for dairy farmers in 2020 and in the years to come.
"The situation is serious and complex. If we are to have sustainable, Norwegian milk production that contributes to value creation across the country in the future, Tine must do everything possible to minimise this fall in income," said chairman Marit Haugen.
Presently, the cooperative comprises 10,000 members, 8,000 farms, 34 plants, and 4,300 employees.
Chief executive Gunnar Hovland added, "We need to improve how we interact and use our resources more effectively in the future. Lower milk volume also results in less activity and need for resources. Therefore, we must reduce staff by about 400 across the various functions of Tine SA by the end of 2021."
However, he assured that all employees will be "well looked after" in the upcoming restructuring work. "We will work well with union representatives as we have experience with such processes in the past," he added.
© 2019 European Supermarket Magazine – your source for the latest retail news. Article by Dayeeta Das. Click subscribe to sign up to ESM: The European Supermarket Magazine.