More jobs to go as Arla continues ‘Calcium’ transformation

By Jim Cornall contact

- Last updated on GMT

The Calcium program was launched earlier this year.
The Calcium program was launched earlier this year.

Related tags: Arla, Arla foods

Arla Foods has announced further changes to some of its corporate group functions as part of its ongoing transformation program, Calcium, with the loss of 140 jobs.

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.

Related topics: Manufacturers, Arla Foods, Consolidation

Related news

comments

Post your comment

We will not publish your email address on the website

These comments have not been moderated. You are encouraged to participate with comments that are relevant to our news stories. You should not post comments that are abusive, threatening, defamatory, misleading or invasive of privacy. For the full terms and conditions for commenting see clause 7 of our Terms and Conditions ‘Participating in Online Communities’. These terms may be updated from time to time, so please read them before posting a comment. Any comment that violates these terms may be removed in its entirety as we do not edit comments. If you wish to complain about a comment please use the "REPORT ABUSE" button or contact the editors.