Necessary cost reduction plan in Danmission will pave the way for new initiatives

Danmission will strengthen its local presence around the world in the wake of necessary cost reductions following the corona crisis.

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The corona crisis has been exceptionally tough on Danmission’s economy due to the lack of revenue from the secondhand shops. Consequently, it has been necessary to implement a cost reduction plan that has just been approved by Danmission’s Board of Directors.

The plan includes cost reductions for a total of DKK 14.4 million (USD 2.2 million), DKK 8.2 million in 2020 and DKK 6.2 million in 2021. Some cost reductions are temporary and others more permanent.

One of the consequences of the cost reduction savings plan is that unfortunately we have to say goodbye to a number of highly skilled and valued staff members in Denmark; that some vacancies will not be filled for now and that there is change in working hours or functions for some of our colleagues. In total, five permanent staff have been laid off today.

“It hurts to say goodbye to such talented colleagues, who have served not just Danmission but the entire Danmission cause for many years,” says Danmission’s general secretary Kristian Sloth, adding that Danmission will do its best to help the laid-off staff members move forward .

The purpose of the cost reduction plan is two-fold: first and foremost, we must secure financial balance and positive cashflow. This means that the overall economy is expected to balance in 2021, while in 2020 we can expect a deficit of app. DKK 7 million (USD 1.1 million) despite the cost reduction plan. This is due to the fact that the full effect of the cost reductions will not materialize until 2021.

The projected deficit in 2020 comes on top of a very successful 2019, where Danmission saw a profit of DKK 3.6 million (USD 542000) and thereby succeeded in restoring the economy after a few years of deficits.

Additionally, the purpose is to create the necessary financial capacity to invest in the implementation of the new strategy for public engagement and the new program strategy, which the Danmission Board of Directors has just adopted.

“We wish to raise awareness and engage more people in Danmission’s work; both in Denmark, where we want to strengthen the opportunities to take active part and make a difference, and also around the world. We wish to send out more funds must and strengthen our work in Africa, Asia and the Middle East; we wish to move closer to our partners and strengthen our fellowship – partly by strengthening the country offices and partly by developing new ways of sending out people for a shorter or longer time, ”says Rev. Morten Skrubbeltrang, chairman of Danmission’s Board of Directors.

When the cost reduction plan and new organisational restructuring has been completed in 2021, Danmission expects to employ staff equivalent to a total of app. 51 fulltime positions. Of these, posted and local staff in offices and projects around the would make up an equivalent to app. 18 fulltime positions; a figure that is expected to increase in the coming years.

Further information:

Rev. Morten Skrubbeltrang, chairman Board of Directors, tel. 30 66 20 50, email ms@haslekirke.dk

Kristian Sloth, Secretary General, tel. 41 99 93 25, email ksp@danmission.dk

Michael Trinskjær, Head of Communications and Engagement, tel. 41 99 93 21, email mit@danmission.dk

URL: https://english.danmission.dk/blog/2020/06/19/necessary-cost-reduction-plan-in-danmission-will-pave-the-way-for-new-initiatives/