FrieslandCampina will cut 1,800 jobs over the next two years, more than half of which will be in the Netherlands. The company does this to reduce costs. According to the company, Veghel is home to one of the largest milk processing factories in the world. About five hundred people work there.
It has not been announced whether jobs will also be lost at the Veghel factory. But according to the company, workshops are being lost in almost all parts of the organization. In March, the company expanded production at the location in Veghel. The capacity was then increased from twenty to eighty tons of the ingredient lactoferrin per year.
The company will cut approximately 1,200 jobs in 2024. The other 600 will follow the following year. “Today is a tough day for FrieslandCampina,” says Karnebeek CEO Jan Derck. He calls these ‘difficult but necessary steps’ to structurally reduce costs.
“We realize that the announcement about job losses has a major impact on the people involved. We will therefore do our utmost to inform and guide everyone as best as possible in these difficult times,” the CEO said.
Compete in the market
The company announced the major reorganization at the beginning of October, which should save four hundred to five hundred million euros annually. It was not yet known how many jobs would disappear. “These cost savings should help FrieslandCampina to compete well and win in the market, in the interests of our employees and member dairy farmers.”
The news follows a disappointing six months, in which profits fell sharply. The reason was that the market prices for dairy were much lower than the prices that FrieslandCampina paid to livestock farmers for milk.
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