NETHERLANDS – Dutch dairy cooperative FrieslandCampina has unveiled plans to cut 1,800 jobs worldwide over the next two years aiming to to streamline its operations and lower costs.
The announcement, made by Jan Derck van Karnebeek, CEO of Royal FrieslandCampina, acknowledges the significant impact this decision will have on the organization’s workforce.
The job cuts are expected to affect nearly all parts of the company, with approximately 1,200 jobs slated for elimination in 2024.
“This move is part of FrieslandCampina’s broader initiative, Expedition 2030, a sharpened strategy aimed at fortifying its position as an innovative and sustainable player in the dairy industry.”
Van Karnebeek emphasized the necessity of these steps, stating that 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.”
He further expressed the company’s commitment to supporting affected employees during this challenging time.
The dairy cooperative has set ambitious targets for annual gross cost savings, aiming for €400 million to €500 million from 2026.
Of the job reductions announced, savings ranging from €180 million to €200 million are expected. This financial restructuring aligns with FrieslandCampina’s broader goal of enhancing its competitiveness and securing its position in the market.
Part of the annual savings will be allocated to offset inflation, with the remaining margin expansion evenly divided between investing in sustainable growth and increasing the company’s net profit.
To realize these savings, FrieslandCampina anticipates incurring one-time costs of up to €170 million in 2023.
All proposed decisions are subject to Central Works Council advice and compliance with local laws and regulations.
Additionally, the company communicated that, due to disappointing financial results in 2023 and the aforementioned one-off costs, there will be no supplementary cash payment to member dairy farmers in 2023.
“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,” Van Karnebeek concluded.
“As the dairy industry undergoes transformational changes, FrieslandCampina’s cost-cutting measures underscore its commitment to resilience and adaptability in the evolving global market.”
