Farstad Lets 26 Go
- Business & Finance
Norwegian shipowner Farstad Shipping has decided to reduce the size of the organization at the office in Aalesund with 26 positions.
In January, the company started a process with the aim of reducing administrative expenses at the office in Aalesund.
Farstad Shipping recorded a net loss of NOK 1.32 billion for the fourth quarter on impairments of NOK 1 billion, and also booked a loss of NOK 2.17 billion for the full year 2015.
“It is regrettable that highly skilled employees now lose their job. The current market situation is challenging, and with seven ships laid up in the North Sea region including layoffs among seafarers, we also have to reduce the number of onshore employees,” says Karl-Johan Bakken, CEO of Farstad Shipping.
Cost reduction measures
As part of a larger process, Farstad Shipping has since 2014 implemented a number of cost-saving measures both onshore and offshore. The company’s branch office in Aberdeen has been closed down, redundancies and layoffs among seafarers have been carried out, sales of older vessels are completed and seven vessels are currently laid up in the North Sea region. Further measures are expecting ahead.
“By initiating these measures, we are preparing Farstad Shipping for the future. We have been through heavy storms before, and our advanced fleet as well as an organization with high expertise, will secure our position as the leading player in our industry,” Bakken says.