News

Arla Foods to shed up to 400 jobs

1 Jun 2018

Arla Foods has announced changes to a number of its corporate Group functions and to its cheese production that could see up to 400 jobs eliminated.

Arla Foods to shed up to 400 jobs

Arla Foods has announced changes to a number of its corporate Group functions and to its cheese production and logistics in the UK as part of the ongoing internal transformation programme.

Earlier this year, farmer-owned Arla Foods launched a three-year programme to achieve 400+ million euro savings and efficiencies and transform Arla Foods into a stronger and more competitive company. The programme, called Calcium, aims to reshape Arla’s organisation to focus even more on the frontlines of the business, where the value exchange takes place with customers and consumers.

One of the requirements to achieve this is the streamlining of the company’s corporate operations and support functions. This process has now begun, starting with global functions such as Finance, Legal & IT, Corporate Strategy, Member Relations, HR & Corporate Affairs.

As a result of the changes announced, 195 positions are expected to be made redundant across the affected corporate support functions. The impact is predominantly at the company’s head office in Aarhus, Denmark, however with smaller numbers of positions affected at the company’s administrative offices elsewhere in Europe.

Arla has also identified what it says is a substantial opportunity to optimise its cheddar cheese production as well as improve efficiencies consolidating operations across its production and packing sites, where it currently has capacity which is not currently being fully utilised.

Arla is announcing a proposal to cease production at its Llandyrnog creamery, consequently moving cheddar cheese volumes to its Taw Valley and Lockerbie creameries. In addition, Arla is proposing the integration of all its cheddar cheese packing lines into its Oswestry packing facility, which will result in the closure of its smaller Malpas and Lockerbie packing operations.

The proposed consolidation, subject to the completion of the consultation process, could put around 154 roles at risk of redundancy by the end of 2018.

Over the next three years, the company believes that the Calcium programme will transform activities throughout Arla, including production, products, procurement, promotional marketing and people. The programme is running at a time when Arla is facing two unique external challenges as a result of the extent of the company’s exposure to the British pound and unfavourable developments in commodity markets.

“We want to achieve the goal of building a stronger, more competitive Arla, which serves our customers and consumers better and provides higher returns to our farmer owners and that requires us to make tough decisions. In order for Arla to continue to deliver on our Good Growth 2020 strategy that brings innovative dairy products to millions of consumers around the world, we must become one of the most agile and frontline-obsessed companies in today’s fast-paced and complex global food industry,” said CEO of Arla Foods, Peder Tuborgh.

“It is never easy to say goodbye to valued colleagues, especially in these circumstances, and I would like to thank those people who are leaving us for the contribution they have made to Arla Foods, and I wish them well for the future. We will provide our full support to those colleagues affected during this process.”

With the Calcium programme still in its early stages, Arla says it is too early to disclose what the specific consequences will be within other specific areas of the company, including the total number of jobs that will be added or removed by the ongoing work, however the company expects the net number of positions to be lower. Arla says it expects to communicate openly about the process over the course of the programme.

Related news

Retail landscape lacks nutritious and affordable food, says ATNi

Retail landscape lacks nutritious and affordable food, says ATNi

30 Dec 2025

A rapid increase in modern food retail has given retailers growing influence over consumer diets, according to global non-profit ATNi’s latest assessment.

Read more 
Debate over ban on ‘meaty’ names for plant-based products reaches stalemate

Debate over ban on ‘meaty’ names for plant-based products reaches stalemate

26 Dec 2025

The debate over a ban on plant-based products using “meaty” terms has reached a stalemate, leaving manufacturers in limbo and still facing overhauls to their marketing and packaging.

Read more 
Innovation promise in 'maturing' plant-based dairy alternatives market

Innovation promise in 'maturing' plant-based dairy alternatives market

8 Dec 2025

Plant-based dairy is a maturing market that still faces significant hurdles around taste, functionality, nutrition, and price, but industry is innovating fast, according to experts speaking at Fi Europe.

Read more 
Celebrating the winners of the Fi Europe Innovation Awards 2025

Celebrating the winners of the Fi Europe Innovation Awards 2025

3 Dec 2025

Food industry stakeholders celebrated as the winners of the Fi Europe Innovation Awards were announced at a ceremony in Paris.

Read more 
Big appetite for M&A between European and US food and drink companies

Big appetite for M&A between European and US food and drink companies

3 Dec 2025

Persistent tariffs on EU food and beverage exports have helped drive record levels of M&A activity between European and US companies this year, according to analysis by ING.

Read more 
Non-UPF Program extends certification scheme to entire food industry

Non-UPF Program extends certification scheme to entire food industry

30 Nov 2025

The Non-UPF Program has extended its certification scheme to the wider food sector, championing a move towards healthier consumption habits.

Read more 
Empowering innovation in fortification and colouration

Empowering innovation in fortification and colouration

13 Nov 2025

Divi’s Nutraceuticals offers a large portfolio of innovative, high-quality ingredients for foods, beverages, and supplements, with bespoke solutions and expert support for product success.

Read more 
Danone highlights digestive health as potential ‘tipping point’ for food industry

Danone highlights digestive health as potential ‘tipping point’ for food industry

13 Nov 2025

Danone is betting on a food industry “tipping point” that will bloat the market for healthy products, particularly those related to gut health.

Read more 
Standing Ovation and Bel scale up casein production from dairy co-products

Standing Ovation and Bel scale up casein production from dairy co-products

11 Nov 2025

Foodtech company Standing Ovation has partnered with cheese specialist Bel Group to manufacture dairy serums for industrial-scale casein production via precision fermentation.

Read more 
New UPF standard hoped to offer consumers ‘coherence and clarity’

New UPF standard hoped to offer consumers ‘coherence and clarity’

10 Nov 2025

Ingredients companies are being urged to enter “a new era of partnership and innovation” following the launch of the industry’s first non-UPF verification scheme.

Read more