In addition to the layoffs, 150 positions will be redefined and the company plans to reduce marketing and packaging costs.
Peder Tuborgh, Arla’s chief executive, said in the release that the company needed to streamline its operations.
"We are growing and will continue to grow, but our international competitors have been quicker to turn ideas into action,” said Tuborgh. “Arla needs a more structured and simplified way of working.”
Tuborgh said that Arla's Danish headquarters in Viby will host information sessions for affected employees later this month.
"We regret to say goodbye to many skilled employees,” said Turborgh. “Each one of them has contributed to Arla, but we have to realise that we can’t afford everything.”
The layoffs are expected to be completed by the end of the year.