HELSINKI (Reuters) - German shipyard Meyer Werft’s Finnish subsidiary on Tuesday started statutory talks to lay off up to 450 of its roughly 2,000 employees because of a hit to business from the coronavirus pandemic.
The shipyard, in Turku on Finland’s west coast, had initially started talks over temporary layoffs, but said the market situation had now forced it to look for permanent cuts.
“These negotiations will include the permanent layoff of 450 people and another 900 are affected by other measures. These include temporary layoffs of different length, work time adjustments and other arrangements,” the company said in a statement.
Instead of ramping-up from one to two large ships delivered per year until 2023, the assumption is now that the Turku yard will build just one large cruise ship per year, it added.
“The corona pandemic has changed the situation unexpectedly and totally. We are facing the fact that the corona-caused pause in cruising requires to stretch the order book,” said Meyer Turku Chief Executive Jan Meyer.
Reporting by Anne Kauranen; Editing by Mark Potter