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Redundancies at Eimskip

Icelandic liner Eimskip has outlined staff cuts as it fights a falling trade picture. The company revealed yesterday 54 staff are being made redundant of whom 39 are based on home soil. Other changes include merging certain departments together as the liner continues its streamlining policy which it first started around 15 months ago.

Vilhelm Már Þorsteinsson, Eimskip’s CEO, commented: “The company’s journey of integrating and streamlining the operation has not been easy, especially not regarding reduction of employees. It has nevertheless been important considering the financial results in the last couple of years. The Covid-19 pandemic has also highly increased uncertainty that cannot be disregarded. By taking these measures we strengthen the financial position of the company and its operations going forward. It should also be kept in mind that the Company has invested considerably in automation and reformation of processes and working procedures which supports these measures. We do not foresee further measures of this scale in the near future.”

Plans by local fishing group Samherji to buy out Eimskip have been put on hold in the last month due to financial uncertainties brought about by the spread of Covid-19.

Eimskip has blanked a number of sailings and returned chartered ships in recent weeks while CEO Þorsteinsson has taken a 10% cut.

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Sam Chambers

Starting out with the Informa Group in 2000 in Hong Kong, Sam Chambers became editor of Maritime Asia magazine as well as East Asia Editor for the world’s oldest newspaper, Lloyd’s List. In 2005 he pursued a freelance career and wrote for a variety of titles including taking on the role of Asia Editor at Seatrade magazine and China correspondent for Supply Chain Asia. His work has also appeared in The Economist, The New York Times, The Sunday Times and The International Herald Tribune.
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