Meat producer Danish Crown has decided to slash around 400 jobs in the group due to the constant dip in the performance of its UK arm, Tulip.
On Wednesday, the Danish meat giant said in a statement that the producer is intensifying the group’s cost-savings programme and thus, would be aiming at reducing its total expenses by 350 million DKK in this financial year. The Danish producer hasn’t cleared the location wise job cutting division, however, Tulip is clearly likely to face the worst consequences.
Last year in November, the meat producer announced 150 immediate job losses, in addition to a 200m DKK savings programme for Tulip in the 2018/19 financial year. It was an instant move driven by Tulip bad performance, when it posted 260m DKK net operating loss for 2017/18, after a 231m DKK loss last year.
In a statement on Wednesday, Danish Crown mentioned that the meat producer’s earnings were witnessing bottlenecks due to issues in the UK business and under-performance of some of the group’s business units. The Group CEO Jais Valeur said that following continuous loses it has become important for them to start further cost savings in the group.
Valeur added that they have decided to take measures well in time to avoid losses in future, and to stay on track to achieve the budgeted profit discussed for the year. He mentioned that the group has to cut around 300 to 400 to achieve their projected profits.
The group will continue to maintaining its hiring freeze that it started in November last year, and will also halt the use of consultants for some time. The CEO added that the group is focusing on identifying the projects that could be put on hold.
Valeur added that recently they have won many vital UK contracts, which shows things are moving in right direction in terms of sales, however, the costs are still very high due to which they need to take some cost-cutting actions. The meat producer currently employs 29,000 people worldwide, including 7,000 in UK.