Danish Crown's chief executive has warned that the company is in the 'midst of a crisis', as it plans to axe 500 jobs.
Europe's largest pig producer said it had seen fewer slaughter pigs and excessive costs, with it suffering financially as a result.
Group CEO Niels Duedahl said the Denmark-based company's costs were 'simply far too high' in relation to earnings.
"We are now adjusting our organisation and focusing 100% on the core business to ensure better settlements for the farmers who own Danish Crown," he said.
It is expected that around 500 salaried positions will be cut across Danish Crown.
The adjustment, along with other cost-saving measures, should provide an annual cost reduction of around £56m.
Moving forward, Mr Duedahl said Danish Crown would have to prioritise the most critical core tasks more stringently to return to being a financially healthy company.
He added: “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."
Since taking over, Mr Duedahl has integrated all the company’s group functions into the same organisational unit, with a "clear goal of streamlining and enhancing Danish Crown".
He signalled that there would be more initiatives in the near future to 'strengthen the company’s focus'.
“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," he said.
"Behind our problems lies a great untapped potential, which I know a focused organisation can unlock when we make the tough but right decisions."
