Earlier this year, farmer-owned Arla Foods launched the three-year Calcium program, which sets out to achieve more than €400m ($454m) savings by the end of 2020, and efficiencies, and transform Arla Foods into a stronger and more competitive company.
When Arla released its half year results for 2018 in August, Calcium already contributed positively to the company’s milk price pay-outs to farmer owners, with total financial contribution expected to be beyond the forecasted €50m ($57m) this year.
Additional corporate functions affected
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.
Arla Foods is now launching further changes to a number of corporate functions, including marketing, supply chain finance, international and HR.
As a result of the changes announced today, 140 positions are expected to be made redundant across the affected areas. The impact is predominantly at the company’s head office in Aarhus, Denmark, with smaller numbers of positions affected at the company’s administrative offices elsewhere in Europe and North America.
Higher speed to market
Most of the changes will impact Arla’s marketing organization as the company aims to simplify its commercial matrix and empower the frontline by securing a higher speed to market.
Arla Foods, CEO, Peder Tuborgh, said the changes will create a simpler and stronger marketing model for Arla’s brands, allowing the company to address needs in European core markets and newer markets in Asia and Africa more quickly.
“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,” 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, and I am pleased to see the level of engagement that Calcium is sparking throughout our organization. It is a big part of the reason why the program is currently delivering ahead of schedule,” he added.