Danish Crown cutting 500 jobs

RANDERS, DENMARK—Major European pork processor Danish Crown recently announced that it expects to lay off 500 employees in a major reorganization that would provide an annual cost reduction of around $73 million.  

“Danish Crown is in the midst of a crisis, and we are facing sweeping changes,” said Niels Duedahl, the chief executive officer of Danish Crown who started in September. “Our costs are simply far too high in relation to our earnings. “It goes without saying that we are obliged to act on this, and we are now adjusting our organization and focusing 100% on the core business to ensure better settlements for the farmers who own Danish Crown.”

Earlier in 2024, the pork producer confirmed that it had decided to close its Ringsted plant in Denmark in mid-September. The closure would result in the loss of nearly 1,200 jobs.

The company previously stated that its business strategy shifted from primarily supplying raw materials to customers worldwide to increasing the value of Danish pork through the production of sustainable, processed foods in 2021.

Duedahl and Danish Crown explained that the latest move was needed to prioritize the most critical core tasks of the business.

“It affects me deeply, but the planned redundancies are unfortunately necessary if we are to become a financially healthy company again,” Duedahl said. “Danish Crown has a long, proud history, and although we are writing a difficult chapter today, we are doing it to be able to write many more positive ones in the future. Behind our problems lies a great untapped potential, which I know a focused organization can unlock when we make the tough but right decisions.”