Dairy group FrieslandCampina wants to save costs and is therefore cutting 1000 jobs during a reorganization, mainly in the Netherlands, Belgium and Germany. The group’s turnover has increased this year, but the company thinks that profits will be under pressure due to the consequences of the corona crisis.
According to CEO Hein Schumacher, the company is facing a “perfect storm”. The company cites the blow to sales in restaurants worldwide, the fall of various currencies, lower dairy prices and the closed border between China and Hong Kong as problems. FrieslandCampina sold milk powder to China through the Hong Kong branch, but that is currently not possible. Nigeria is also an important market for FrieslandCampina, but revenues there are declining due to the weak local currency.
24,000 employees
In the Netherlands, Belgium and Germany FrieslandCampina is looking at which production facilities can close and whether activities can be relocated. More will become clear about those plans in the short term. The reorganization will be completed at the end of 2021. Forced redundancies are not excluded. The factory in Rijkevoort was closed earlier this year.
The company had planned the cost savings for later, but is being brought forward due to the corona crisis. The top of the company is forgoing a long-term bonus for this year. FrieslandCampina employs about 24,000 people worldwide, of which about 8,000 in the Netherlands. There are 11,500 farms affiliated with the corporation.
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