Arla Foods to cut 500 jobs

ARLA FOODS is cutting 500 jobs across its global operations in response to the “dramatically changing global dairy market.”

A spokesperson for the business, which has its UK headquarters in Leeds, said they did not have information on where the job cuts would be at this time. Around one-fifth of its workforce are employed in the UK.

The business is also announcing a reshuffle of its management team.

Current UK operations leader Peter Giørtz-Carlsen is moving to a pan-European role, and Tomas Pietrangeli will be taking over his role in the UK.

Mr Pietrangeli has previously worked at FMCG brands including Procter & Gamble, Unibrew and Reckitt Benckiser. He joined Arla Foods in 2014 as head of its Danish market.

Arla said this would help create a globally-focused structure.

The company is intending on growing revenue 4% each year by 2020. Its UK business currently has a turnover of £2.3bn, employing 3,500 staff across its head office and production facilities.

Related article: Struggle over milk prices creates “tough situation” for Arla

Arla announced Good Growth Strategy 2020 in December 2015, setting out its aims to grow the business.

Peter Giørtz-Carlsen, executive vice president, Arla Foods UK said: “This strategic reorganisation will allow our UK business to become more agile and responsive to the dynamic nature of the market.

“We have strengthened the UK business significantly in 2015 with the growth of our own label and branded volumes in all dairy categories, launched the Arla brand and driven cost efficiencies.

“At the same time, we will become even more commercially focused locally and deliver value to fuel our 2020 ambitions for our farmer owners and customers.

“It’s unfortunate that a number of roles will be impacted and we will work closely with our colleagues over the coming months to minimise the effect that these changes will have on our people.”

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