MacGregor to Cut 190 Jobs amid Cost Savings
MacGregor, part of Cargotec, has informed that it could lay off some 190 employees globally as part of its plans to achieve annual cost savings of around EUR 13 million.
MacGregor, which employed globally 1,876 persons at the end of September 2017, said that the measures are estimated to affect especially the operations in Norway, Germany, China and Singapore.
The company unveiled its cost cutting plans, which include the split of Smart Ocean Technology division into Cargo Handling division and Advanced Offshore Solutions division, and started statutory cooperation negotiations.
The planned savings measures are estimated to be reached in 2018. They are expected to result in restructuring costs of EUR 7 million in the final quarter of 2017.
MacGregor said that the objective of the savings is “to seek synergies in both the offshore and merchant shipping operations and adapt to the prevailing market situation.”
In addition, the aim is to ensure long-term competitiveness on global markets and to continue the improvement of operational efficiency and customer centricity.
MacGregor’s merchant ship contracting improved slightly during January-September 2017 compared to the same period last year, but remained at a very low level. In the offshore industry, the low price of oil keeps investments at an unprecedentedly low level, which affects the demand for offshore load handling solutions. Contracting during January – September in the offshore sector declined compared to the comparison period in 2016. The demand for MacGregor’s services declined during the third quarter especially in the offshore sector.
“These planned measures are necessary to manage the continuing challenging market situation and to maintain our leading position in the maritime cargo flow, mooring and load handling markets,” Michel van Roozendaal, President of MacGregor, said.
“As a result of these difficult but necessary actions MacGregor will be able to continue to develop the company to be the leader in smart cargo and load handling. Consequently we are able to help our customers to develop their operations to be more efficient without compromising safety and eco-efficiency,” van Roozendaal added.