The farmer-owned meat manufacturer says it’s undergoing a “comprehensive transformation” which will result in an estimated 800 job losses.
This sees it moving away from its previous “conglomerate structure” as it knits its independent business units more closely together.
“We need to normalise Danish Crown fundamentally, so we resemble other international companies in our industry,” said group CEO, Niels Ulrich Duedahl.
“Today, our business units largely operate as independent companies. We are changing that by bringing our businesses closer together. We need to operate as one fully integrated group across business areas and across countries."
Through this, Danish Crown aims to generate efficiency improvements of around DDK 500 million (approx. £57.85 million) over the next two to three years.
‘One of the most challenging market environments for pork’
The news follows a downturn in revenue and profit highlighted in its half year report (1 Oct 2025 – 31 March 2026), with Danish Crown pointing to persistent oversupply and intense competitive pressure in the European meat market, with pork particularly impacted and “exacerbated” by outbreaks of African Swine Fever (ASF) in Spain.
The first half of 2025/26 unfolded in one of the most chailenging market environments for pork seen in recent history.
Danish Crown's HY25-26 results, management review
However, Danish Crown argues that the drop in profit is largely due to accounting/payout changes and that underlying performance actually improved.
The report also claims its competitiveness improved. It cites positive results from earlier restructuring initiatives and capacity adjustments which have led to a leaner cost base.
It highlights its German site in Essen benefiting from this strategy - a part of the business it had been previously looking to sell due to weak performance. The company cancelled its planned divestment as operations became more stable.
Hundreds to lose jobs in restructure
This week the business announced its intention to continue restructuring, with plans to consolidate several central group functions that are embedded in the individual business units.
The aim is a much “simpler organisation with fewer management layers, broader and more clearly defined leadership roles”.
Presently, Danish Crown has just over 23,000 employees globally. The restructure will see around 800 positions across the international firm cut across the next two to three years, affecting managers and white-collar employees.
“By consolidating functions at group level, we can leverage our scale better, work more consistently across the organisation and create a more efficient operation,” explained Duedahl.
“Instead of doing things differently depending on which country you are based in, we need shared standards, systems, and targets. Over the next two to three years, this means fewer management layers and fewer employees.”
Danish Crown currently comprises eight business units: Industry, Foods, Beef, UK, KLS, Sokolow, ESS-FOOD and DAT-Schaub.
The restructure will happen gradually across countries and business divisions, with local consultation processes expected to kick off in early June.
Duedahl said while Danish Crown has improved its competitiveness, it has “significant untapped potential”.
He added: “The competition in the global food market is intense, and our owners are facing challenging times due to the quotation level.
“This reinforces the need to continue our transformation to improve our competitiveness and the quotation to our owners. This is an important step in that journey.”
Executive VP departs
The news sees Jens Peter Clausen stepping down as executive vice president with immediate effect.
“I am grateful to Danish Crown for giving me the opportunity to return to Denmark after many years abroad and to become part of a company with strong traditions and highly skilled employees,” Clausen said in a statement.
He continued: “I have great confidence in the transformation of Danish Crown led by Niels Ulrich Duedahl, but I have come to the conclusion that the next phase of my career should take a different direction. Therefore, stepping down now is the right decision for both parties.”
Danish Crown is now seeking a new executive VP for Danish Crown Industry. Until then, Duedahl will take on responsibility.
