The redundancies, expected to be realised during the summer, will affect five departments in the company’s Pork Division, the hardest-hit being the department in Esbjerg where the closing-down of the evening shift will lead to the loss of 328 jobs.
Danish Crown CEO Kjeld Johannesen said: “This is a very regrettable development, but production costs simply must be reduced for pork production in Denmark to return to a reasonable level of profitability. The alternative is massive job losses in Denmark in the coming period.”
The company added the job cuts will contribute to achieving its targets set out in its DC Future plan. The announcement is step one of the company’s contingency plan after the failure to agree a pay freeze in the recent collective bargaining process, it added.
The plan will involve both cuts as a result of increases in efficiency, flagging-out of activities and a general tailoring of capacity.
Danish Crown said it expected to recreate some of the jobs outside Denmark after the summer and there is also hope that a small number of those affected by the job cuts may be offered work at other Danish Crown facilities in the coming period.
Cutbacks include the proposed closing-down of the evening shift in Esbjerg, a proposed closure of the streaky bacon department in Skærbæk and a proposed reduction of fore-end deboning in Horsens.
There will aslo be a financial update and new assessment of the future for Rødding, a closure of the freezing facility in Blans and an analysis of the evening shift in Fåborg, with a view to reducing the size of the evening shift in the autumn and/or closing it down altogether in the long-term.