Dutch dairy cooperative FrieslandCampina declares mass layoffs as part of cost-saving plan
12 Dec 2023 --- FrieslandCampina has set out its intentions to “lower costs” by cutting over 1,800 jobs worldwide over the next two years. The company confirms that almost all parts of the organization will be affected, with approximately 1,200 jobs lost in 2024.
“Today is a tough day for FrieslandCampina. Over the past period, we have analyzed the cost structure of our organization, and we are now announcing difficult but necessary steps to structurally reduce our costs,” says Jan Derck van Karnebeek, CEO of Royal FrieslandCampina.
“The announcement of job losses will have a big impact on the people involved. We will, therefore, do our utmost to inform and assist everyone as best as possible during this difficult time.”
“These cost savings should contribute to FrieslandCampina’s ability to compete and win in the market for the benefit of our employees and member dairy farmers.”
Expedition 2030
FrieslandCampina has already made it clear that it needs to achieve annual gross cost savings of €400 (US$431.8 million) to €500 million (US$539.8 million) from 2026. Around €180 (US$194.3 million) to €200 million (US$215.9 million) can be attributed to the job reductions announced today.
The cost savings are part of Expedition 2030, the sharpened strategy aimed at strengthening FrieslandCampina’s position as an innovative and sustainable player in the dairy industry.
A part of the annual savings will be needed to offset inflation.
The company plans to divide the remaining margin expansion equally between investing in sustainable growth and increasing the company’s net profit.The remaining margin expansion will be equally divided between investing in sustainable growth and increasing the company’s net profit.
To realize the savings, one-off costs of up to €170 million (US$183.5 million) will be booked in 2023.
All proposed decisions are subject to Central Works Council advice and local laws and regulations.
FrieslandCampina also says that there will be no supplementary cash payment over 2023 to member dairy farmers because of the “disappointing financial results in 2023 and aforementioned one-off costs, no supplementary cash payment will be made to member dairy farmers over 2023.”
Edited by Gaynor Selby
