Fjord Line Announces Up to 200 Layoffs and Layoffs – E24

E24 wrote Monday that the shipping company’s management sat in meetings to discuss cost cuts. Communications manager Flemming Hofmann Tveitan later stated that there would be layoffs in the coming days.

At the same time, he said he did not know there would be layoffs. On Tuesday morning, however, the company claims this will happen.

– Even with the authorities’ expanded layoff rules, compensation plan and loan guarantee scheme, we will not escape the fact that employees will be affected. Up to 200 people will be laid off or laid off, says Fjord Line manager Rickard Ternblom.

Fjord Line is one of the largest ferry companies in Norway, sailing to Denmark and Sweden from Bergen, Stavanger and Langesund. According to the company, they have around 1.5 million travelers a year.

100 million in cash support

Since March, Fjord Line has received NOK 100 million in cash support, E24 overview shows.

The ferry company has received support for March, April and May. According to the company itself, during these months it had the so-called unavoidable fixed costs of NOK 198 million.

Ternblom says that in recent years the company has spent significant resources optimizing its operations.

The shipping company stresses that it is “very difficult to predict the duration of the crisis”, so they will have to take new measures.

– Cost reductions are the only thing that helps when revenues drop as dramatically as what we’ve experienced in recent months, Ternblom says.

According to the press release, the company had an 80 percent drop in profitability from March to August, compared to 2019. Right now, Fjord Line has reserves that correspond to a fraction of what they typically have at this time of the year. year.

Preparing for a prolonged crisis

The tourism industry is among the hardest hit by the crown crisis.

– We are now preparing for the fact that it may be a long time before we return to normal operation, says Ternblom.

At the same time, the company emphasizes that liquidity is assured. According to Fjord Line, cash support, refinancing, internal restructuring and equity represent a positive cash flow of NOK 700 million for 2020.

In early September, it was announced that Color Line would cut around 300 man-years.

At the same time, the company said that it must reduce costs by 250 million starting next year.