Danish Crown has initiated negotiations with the employees on the cutting of a total of 580 jobs. The redundancies will affect five departments in the company’s Pork Division, the hardest hit being the department in Esbjerg where the closing-down of the evening shift will lead to the loss of 328 jobs.
The job cuts will contribute to achieving the targets set out by Danish Crown in DC Future. This is step one of the company’s contingency plan after the failure to agree a pay freeze in the recent collective bargaining process. This was a very regrettable development, but production costs simply had to be reduced for pork production in Denmark to return to a reasonable level of profitability, said Kjeld Johannesen, Danish Crown’s CEO.
The plan involves both cuts as a result of increases in efficiency, flagging-out of activities and a general tailoring of capacity. Danish Crown expects to recreate some of the jobs outside Denmark after the summer holidays, but there is also some hope that a small number of those affected by the job cuts may be offered work at other Danish Crown facilities in the coming period. The job cuts are expected to be realised around the time of the summer holidays this year.
Source: Danish Crown