Havyard Group restructuring - around 100 job losses expectedCompany News // August 14, 2015
Havyard Group ASA in Norway says it is taking further measures to adapt to the market situation and maintain the group's profitability.
In a statement, the company said that all business areas in Havyard Group have been affected to a varying degree by the downturn in the oil industry. The group has been working on rationalisation and restructuring in order to adapt to the new conditions. As a result of recent market developments and expectations of continuing low demand, the group is now implementing further measures. Among others, this will entail reducing the company's workforce by around 100 full-time posts.
A market that had experienced an "extradordinary boom" has now become a market with little demand and extreme pressure on prices, especially as regards offshore vessels, said Geir Johan Bakke, CEO of Havyard Group.
"The downturn in the market is expected to last for a while, and we don't expect the next upturn to be as big as the last one either. That is why we are continuing the process of restructuring and rationalising the business areas in the group.
"Our goal is to ensure our profitability in the long term and secure jobs by adapting to the market and improving our competitiveness. We are far from the only company in Norway that is facing this challenge.
"Fish, aquaculture and windfarm service vessels are markets where there is still demand and where Havyard is in a more favourable position," he said. "We also believe that the offshore market will bounce back and are optimistic on behalf of both Havyard and the industry in the longer term."
The downsizing of the workforce will involve all business areas in Havyard Group, but the biggest cuts will be at Havyard Ship Technology and Havyard Design & Solutions. The number of employees will be reduced in most of Havyard's locations.
"Extensive restructuring measures of this kind are difficult for both the company and the workforce," said Frank Levi Kvalsund, HR Director of Havyard Group ASA. "It is particularly difficult for those directly affected by the cutbacks, of course. We nonetheless hope that people will understand that these measures are necessary to ensure the company's profitability and to secure jobs going forward. We will do our utmost to ensure that the restructuring process is carried out in the best possible way, both for those who have to leave and for those who will remain with the company. The process of specifying how many and who will be made redundant is currently ongoing, and those affected will be informed in the near future."