Global meat producer Danish Crown has announced that it will make around 500 salaried positions redundant as part of “efforts to restore the financial health of the company”.

The company said that the adjustment, along with “other cost-saving measures”, will provide an annual cost reduction of DKK 500 million.

Moving forward, Danish Crown also said it would have to prioritise the “most critical core tasks more stringently” to return to being a “financially healthy” company.

Niels Duedahl, Danish Crown Group CEO, said: “Danish Crown is in the midst of a crisis, and we are facing sweeping changes. Our costs are simply far too high in relation to our earnings. It goes without saying that we are obliged to act on this, and we are now adjusting our organisation and focusing 100% on the core business to ensure better settlements for the farmers who own Danish Crown.

“It affects me deeply, but the planned redundancies are unfortunately necessary if we are to become a financially healthy company again. The good news – although difficult to talk about on a day like today – is that Danish Crown are in control of the situation and can resolve the crisis internally.

“Danish Crown has a long, proud history, and although we are writing a difficult chapter today, we are doing it to be able to write many more positive ones in the future. Behind our problems lies a great untapped potential, which I know a focused organisation can unlock when we make the tough but right decisions.”

Danish Crown said legal notices will be delivered after the negotiation period and no later than the end of October in Denmark and abroad according to national regulations.