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Arla to switch management team and fire 500 people

The Nordic, farmers’ owned, dairy giant Arla is today announcing great structural changes to its organisation, a new executive management team and a new structure resulting in that 500 roles will disappear across its markets. 

The reorganization comes after that Swedish Television recently eyed Arla’s activities. The program ”Uppdrag granskning” revealed that Arla had given away gold watches and jewelry, and a widespread culture of official dinners at top restaurants.

Sweden-CEO Henri de Sauvage was highlighted for having allowed Arla to pay his wife’s Paris-ticket, a cost he paid back afterwards. He will continue to be responsible for the Nordic markets Sweden, Denmark and Finland, according to Arla’s press release, but he may leave Arla’s Group management, which is reduced from nine to seven members.

“Arla has grown its business significantly in recent years both organically and through mergers. However, more milk is being produced globally, Europe is experiencing pressure on prices and very little growth, which means competition is fierce,” says Arla CEO, Peder Tuborgh, in the press release.

“In addition, consumer needs are becoming more diverse and our customers expect increasing levels of service. Therefore we need to be more agile and cost efficient to remain competitive. In order to remain at the very top of their preferred partners list it will be necessary to change the ways we work.”

Peder Tuborgh has assembled a new executive management team (EMT) built around specific functional areas and with commercial markets organised in two geographical areas; Europe and International:

– Peder Tuborgh, CEO and head of MMT (Milk, Members & Trading)
– Povl Krogsgaard, vice-CEO and head of Global Supply Chain
– Natalie Knight, CFO
– Ola Arvidsson, HR & Corporate Affairs
– Hanne Søndergaard, Marketing & Innovation
– Peter Giørtz-Carlsen, Europe
– Tim Ørting Jørgensen, International

 

“This is a fundamental change for the company. For many years, Arla has grown mainly through cooperative mergers where the new milk already had a position in the market. Our continued success depends on our organisation’s ability to increase the value and develop profitable positions for the growing milk volumes coming in now from our existing farmer-owners. We need to act local and think global and the new organisation reflects this,” says Peder Tuborgh.

 

 

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