FrieslandCampina is going to reorganize, which will result in job losses. The group wants to save 400 to 500 million euros annually. The 22 production locations, including in Meppel and Beilen, will remain open, according to the dairy company.
The group announced this summer that it would take a critical look at costs, after disappointing half-year figures. According to CEO Jan Derck of Karnebeek, the intervention at the company is necessary to ‘remain attractive to member dairy farmers, employees and customers’.
It is still unclear how many jobs will disappear. The intended cost savings will be further developed in the coming months. It is clear that the focus will be on the so-called ‘support functions’.
According to the group, part of the annual savings is necessary to compensate for inflation. The remainder will be “proportionally divided between investing in sustainable growth and increasing the company’s net profit.”
FrieslandCampina, known for brands such as Friesche Vlag, Vifit, Valess, Optimel and Milner, is one of the largest dairy companies in the world, with approximately 22,000 employees. Thousands of Dutch, Belgian and German dairy farmers are members of the cooperative. They are not only suppliers but also owners and supervisors of the company.
The dairy company saw net profit fall by more than 94 percent to 8 million euros in the first half of this year. Profits were mainly depressed because the milk price that FrieslandCampina paid to dairy farmers in the past six months was much higher than the sharply decreased market prices for dairy products.