Danish Crown is continuing a major transformation aimed at strengthening the company’s position in the global market. Following improvements in competitiveness and the creation of a foundation for a new ownership model, the group is moving away from its conglomerate structure towards a more integrated management system.
At present, Danish Crown’s individual business units largely operate as independent companies. The new model provides for closer integration of operations across business areas and countries.
“We must work as one fully integrated company — across all business areas and countries,” said Group CEO Niels Ulrich Duedahl.
Savings to Reach DKK 500 Million
Danish Crown estimates that the transition to the new organisational model will improve efficiency and generate savings of DKK 500 million over the next two to three years.
The company plans to consolidate a number of central corporate functions that are currently organised separately within different business units.
The new structure will include:
- fewer management layers;
- broader and more clearly defined managerial responsibilities;
- more direct reporting lines;
- common standards, systems and objectives across all countries and business areas.
According to the company’s management, centralising these functions will allow Danish Crown to make better use of the group’s scale and standardise working processes throughout its international organisation.
Job Cuts to Affect Managers and Office Staff
As a result of the reorganisation, Danish Crown plans to reduce its workforce by around 800 employees over the next two to three years.
The changes will mainly affect managers and office-based staff, as central functions are consolidated across the business units. The reductions will be implemented gradually in different countries and areas of operation.
Danish Crown comprises eight business units: Industry, Foods, Beef, UK, KLS, Sokołów, ESS-FOOD and DAT-Schaub.
Consultations on the implementation of the plan are expected to begin at the individual country level.
Company Aims to Increase Payments to Farmer Owners
Danish Crown emphasised that competition in the global food market remains extremely intense, while the company’s farmer owners continue to operate under challenging economic conditions.
The completion of the transformation is therefore expected not only to reduce costs and improve operational efficiency, but also to strengthen the group’s competitiveness and increase settlement payments to its owners.
“We have already improved our competitiveness, but we still have significant untapped potential. This step is crucial to completing our transformation,” said Niels Ulrich Duedahl.
PigUA.info, based on materials from euromeatnews.com