Niels Duedahl, Group CEO: Danish Crown is in the middle of a crisis
It is necessary to set firm priorities going forward, says Group CEO Niels Duedahl, who together with his management team today presents a comprehensive organizational adjustment.
"Danish Crown is in the middle of a crisis, and we are facing sweeping changes. Our costs are quite simply far too high in relation to our earnings. It goes without saying that we are obliged to act on that, and we are now adapting our organization and focusing one hundred percent on the core business to ensure a better settlement for the farmers who own Danish Crown", says Niels Duedahl.
It is expected that around 500 clerical positions will be cut across Danish Crown. The adjustment, together with other savings measures, will result in an annual cost reduction of DKK 500 million. In the future, Danish Crown must prioritize the most critical core tasks harder in order to return to a financially sound business.
"It affects me deeply, but the planned layoffs are unfortunately absolutely necessary if we are to become a financially sound company again. The good news - although it is difficult to talk about such today - is that Danish Crown has the situation in its own hands and can solve the crisis from within", says Niels Duedahl, who also warns that there will be more measures in the coming time , which will strengthen the company's focus.
Since Niels Duedahl took over the job as Group CEO on 1 September, he has put himself in charge of the core business and at the same time made all the group's support functions part of the same organizational unit - with a clear goal of streamlining and streamlining Danish Crown.
"Danish Crown has a long, proud history, and even if we are writing a sad chapter today, we are doing it in order to be able to write many more positive chapters in the future. Behind our problems is a great untapped potential, which I know that a focused organization can release when we make the difficult but right decisions", says Niels Duedahl.
In the case of major rounds of redundancies in Denmark, statutory negotiations must be initiated with employee representatives with a view to limiting the scope and securing the conditions for those dismissed. That process begins now. Terminations are handed out after the negotiation period and at the latest by the end of October in Denmark and abroad according to national rules.
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