Danish Crown's Strategic Restructure Amid Economic Crisis

Danish Crown announced plans to cut 500 white-collar jobs to save 500 million crowns annually. The restructuring aims to address high costs relative to earnings and ensures better payments to farmer-owners amid a corporate crisis under new CEO Niels Duedahl.

In a significant corporate shakeup, Danish Crown, a leading meat producer and exporter, announced plans to lay off around 500 white-collar employees. The move aims to slash 500 million crowns, equivalent to $73.35 million, in annual costs.

Chief Executive Officer Niels Duedahl, who assumed his role on September 1, issued a statement addressing the financial challenges the company currently faces. "Danish Crown is in the midst of a crisis, and we are facing radical changes. Our costs are simply too high in relation to our earnings," Duedahl stated, emphasizing the need for dramatic changes.

The reorganization focuses on reinforcing the company's core business to ensure better compensation for the farmers who own Danish Crown. This strategic realignment reflects the company's commitment to sustainable operations amidst fluctuating economic conditions.

(With inputs from agencies.)