Color Line AS, one of Europe’s leading shipping companies, has been hit hard by the corona pandemic and is forced to cut costs. From 2021, 300 man-years will disappear, the company states.
“The plans will secure jobs and future profitability”, says CEO Trond Kleivdal in Color Line in a press release.
The goal is a lasting cost saving of around NOK 300 million from 2021. This is necessary because the infection situation in Norway and abroad is demanding and reopening will take time. The restructuring will have a price tag of around NOK 50 million, the company writes in a stock exchange announcement.
Will use voluntary schemes
“Color Line plans to use as many voluntary schemes as possible in connection with the downsizing”, Kleivdal emphasizes.
The downsizing will take place both on land and on board. Color Line states that the reduction in man-years takes place in accordance with the main agreement and after discussions with shop stewards.
In addition to cutting positions, the company will also reduce operating costs. This will be achieved by using new opportunities created by technology investments in the previous year.
Sad news
The main shop steward for the Norwegian Seamen’s Association in Color Line, Erina Bryn Kjær, tells NTB that the news is sad and that many employees are now worried.
“My first thought is that it is tough news for the employees. Many people take it very seriously. 300 man-years is a lot, and there are many who are affected both at sea and on land”, she says.
At the same time, Kjær emphasizes that the change is unavoidable.
“It is simply sad, but necessary if we want to save the company. It is unavoidable, unfortunately”, she says.
© NTB Scanpix / #Norway Today
Be the first to comment on "Color Line AS cuts annual workforce by 300"