Danish Crown, one of the world’s largest pork shippers, is shutting offices and cutting jobs as the European Union’s once-booming exports sink.

A rebound in China’s hog herd and soaring inflation have curbed meat sales, the company said Monday. That’s forcing cost cuts as the “massive demand” and historically high prices from less than two years ago are replaced by reluctant consumers and sluggish exports.

“These are drastic changes which have happened in a very short space of time,” said Group Chief Executive Officer Jais Valeur. “Now, everything has been turned upside down, and we’ve had to rethink the way in which we can achieve our goals.”

The company aims to lower annual expenses by 400 million Danish kroner ($58.6 million). It will shut or merge sales companies outside Denmark during the next six months and cut 150 positions, including about 100 in the country. 

The EU is the world’s top pork exporter, and Danish Crown’s moves add to the bearish tone across the global industry. Hedge funds recently turned net bearish in the Chicago hog market for the first since since 2019 and pig prices have plunged in top producer China. Danish Crown recently said it will shut a German pork plant as the country’s herd shrinks.