J. Lauritzen has announced to cut 15% of i[ds_preview]ts shore-based staff in Denmark and abroad – due to the ongoing market weakness.
When fully implemented, towards the end of 2017, it will entail the redundancy of around 15% of the land-based workforce. The company’s sea-based employees will not be affected.
The ongoing market weakness continues to have an adverse impact upon the profitability, Lautitzen said in a statement. Further steps to address the cost base have to be made in order to safeguard the future of the company.
»We deeply regret that we must say goodbye to skilled and dedicated staff, but we will do our utmost to support and help the ones affected«, says Mads P. Zacho, CEO of J. Lauritzen.
Despite some recovery towards the end of 2016, dry cargo freight markets are under prolonged pressure due to overcapacity and a substantial number of newbuildings scheduled to enter the market. Furthermore, Lauritzen‘s smaller gas carriers are negatively impacted by the market weakness for large gas carriers.
J. Lauritzen operates a modern, diversified fleet of bulk carriers (98) and small gas carriers (32). Apart from the headquarter in Copenhagen, there are overseas offices in China, the Philippines, Singapore, Spain, Switzerland and USA.
The Danish owner reported a loss of –42 mill. $ after 9 months compared to a loss of –160,7 mill. $ for the same period in 2015.
