Around 140 jobs are set to go as Arla Foods announces the next steps of its €400 million savings programme ‘Calcium’.
The three-year Calcium programme, which sets out to achieve efficiencies and transform Arla Foods into a stronger and more competitive company, began earlier this year.
As reported in August, when Arla released its half-year results for 2018, the Calcium programme is already contributing positively to the company’s milk price pay-outs to farmer-owners and delivering ahead of schedule, with total financial contribution expected to be well beyond the forecasted €50 million this year.
Areas under target
Part of the transformation process is the continued streamlining of the company’s corporate operations and support functions.
This process was initiated in the first half of the year, with significant changes already being implemented across global functions such as Finance, Legal & IT, Corporate Strategy, Member Relations, HR & Corporate Affairs.
Today, Arla Foods is announcing further changes to a number of corporate functions, including Marketing, Supply Chain Finance, International and HR.
As a result, 140 positions are expected to be made redundant. The impact is predominantly at the company’s head office in Aarhus, Denmark; however, with smaller numbers of positions affected at the company’s administrative offices elsewhere in Europe and North America.
‘Tough decisions’
Most of the changes announced today will impact Arla’s marketing organisation as the company aims to simplify its commercial matrix and empower the frontline by securing a higher speed to market.
Arla Foods chief executive Peder Tuborgh said: “The changes we are announcing today 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.
“It is part of our effort to build close relationships with local customers and governments in addressing some of the bigger challenges around health and sustainability.
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. It is a big part of the reason why the programme is currently delivering ahead of schedule.”
