FrieslandCampina to cut 1,000 jobs in Netherlands, Belgium and Germany
Topics: FRIESLANDCAMPINA NETHERLANDS BELGIUM GERMANY
Most of the job losses will happen in the Netherlands, Belgium and Germany.
The company has to cut costs due to the coronavirus pandemic, FrieslandCampina said in a statement on Tuesday.
While the majority of FrieslandCampina's operating companies managed to increase their revenues so far this year, the company is still "weathering a perfect storm in 2020", CEO Hein Schumacher said.
"Setbacks directly or indirectly caused by the coronavirus pandemic have significant financial impact on our profitability in 2020 and cannot be fully offset," Schumacher said.
"Furthermore, profit margins in the Netherlands, Belgium and Germany remain under pressure."
According to Schumacher, the coronavirus crisis resulted in the border between Hong Kong and China still being closed, lower bulk dairy prices, and a fall in food service revenues worldwide.
And all this put pressure on the FrieslandCampina results.
The company will therefore accelerate its plans to optimize the organization in order to reduce costs.
This includes cutting around a thousand jobs, mainly in the Netherlands, Belgium, and Germany.
The company will do this through natural staff turnover, redeployment and refraining from filling vacancies, as much as possible.
But forced redundancies cannot be ruled out. ■