Danish Crown Announces Major Restructuring and Layoffs Amid Increased Competition

Danish Crown, a major meat producer and exporter, has announced a second major restructuring and layoffs within a year due to increased competition and overcapacity outside Europe. The company plans to close one of its major slaughterhouses in Denmark and lay off nearly 1,200 employees by mid-September 2023.

Danish Crown CEO Jais Valeur stated that the decision was a "heavy" one, but necessary to adapt to the decline in the number of pigs slaughtered in the last two years, which has reduced the efficiency of its existing facilities in Denmark. The company is now focusing more on the European market, where there is demand for Danish bacon and pepperoni, to address the increased competition from China and the USA.

The restructuring will involve closing the company's Ringsted factory in September, resulting in 1,200 job losses. However, it will also create 300 new jobs at Danish Crown factories in Jutland towns. The company expects to have enough jobs for employees willing to relocate to one of the group's four Jutland plants.

Why this matters: The restructuring at Danish Crown highlights the challenges faced by meat producers in Europe as they grapple with increased global competition and changing market dynamics. It also underscores the impact of these changes on workers and local communities.

Valeur emphasized that this move is part of the company's efforts to cut costs and adapt to the changing market conditions. "We have unfortunately had to say goodbye to many skilled and loyal employees today," he said. Danish Crown remains committed to maintaining its position as a leading meat producer and exporter in Europe while navigating the challenges posed by the evolving global market.

Key Takeaways

• Danish Crown to close major slaughterhouse, lay off 1,200 workers by Sept 2023.
• Closure due to declining pig slaughter and increased global competition, esp. from China and USA.
• Restructuring to focus more on European market for Danish bacon and pepperoni.
• 300 new jobs to be created at Danish Crown's Jutland plants, with relocation options.
• Restructuring highlights challenges faced by European meat producers amid global market shifts.