Friday November 29, 2024

Viking Line cuts 180 jobs in Finland

Published : 23 Oct 2020, 21:31

Updated : 24 Oct 2020, 20:33

  DF Report
Photo Source: Viking Line.

The Cruise ship operator Viking Line has decided to cut 180 jobs after conclusion of a cooperation negotiations following the deteriorating financial situation due to coronavirus outbreak, said the company in a press release on Friday.

About 200 land-based staff in Finland and Åland have been affected by the negotiations, and the number of job cuts amounts to 180.

The company, however, said that about 70 people will be offered new jobs and employment contracts. In addition to the staff cuts, most of Viking Line’s land-based and shipboard staff will continue to be on part-time or full-time furlough.

The negotiations began on September 1, 2020. Similar negotiations in Sweden in accordance with the Swedish Act on Co-Determination in the Workplace were concluded in mid-September, while negotiations with land-based staff in Estonia are expected to be completed in October.

The ongoing coronavirus (COVID-19) pandemic has caused a serious deterioration in the group’s operating conditions, and cost-cutting measures are required.

The company has therefore carried out a reorganisation of the functions of its land-based organisation in order to achieve savings, improve operational efficiency, ensure the company’s future competitiveness and secure its economic position.

“The coronavirus pandemic has been overwhelming for passenger ship companies, and unfortunately many Viking employees must now experience the economic effects of this. It feels unfair, but is unavoidable. In this challenging situation, adaptation measures are unfortunately necessary to ensure the company’s future operating conditions. We will be forced to start up operations in a new way once the pandemic has been overcome,” said Viking Line’s President and CEO Jan Hanses.