Royal IHC prepares for job cuts as it returns to core offshore and dredging market
Dutch offshore vessel and services provider Royal IHC has decided to reorganise to be in line with “a realistic turnover ambition”. This means that about 300 jobs will be lost in the Netherlands and as many as 300 in other locations.
In order to return to profitability, after its takeover by an industry consortium, and to offer it a sustainable future, Royal IHC said on Thursday it is returning to its core activities in the dredging and offshore market.
In addition, the size of the organisation will be brought in line with the expected turnover for the coming years.
As a result of these changes, about 300 jobs will be lost in The Netherlands in the coming months.
A similar number of redundancies will take place at its various offices outside The Netherlands. This mainly concerns management and office roles.
Royal IHC CEO, Gerben Eggink, commented: “It is very painful that we now have to say goodbye to some of those colleagues. However, I am convinced that given their own qualities and with the guidance we provide them, they will be successful in moving from work to work.
“Because we are now adapting the organisation to the expected turnover and structuring the company in such a way that we can respond efficiently and flexibly to market movements, IHC can continue to fulfil its leading role in the Dutch maritime industry. This is how we preserve the unique and high-quality technology and knowledge in The Netherlands”.
Royal IHC to focus on dredging & offshore
According to Royal IHC, it was clear at the time of its acquisition by an industry consortium last June that IHC would define a new strategy in which it would return to its strong foundations.
Moving forwards, the company said it will focus on its core activities in the dredging and offshore market.
Furthermore, activities in the (wet) mining and defence markets have been designated as potential core activities, with opportunities to develop further.
On the other hand, other activities and business units will be divested, with the key objective being job retention.
“In order to achieve a sustainable future perspective, the organisation needs to be restructured in line with its current workload and turnover ambitions for the coming years”, Royal IHC explained.
In view of the global economic situation, Royal IHC said that an order book with a value of EUR 600-700 million is a realistic starting point. The organisational changes, a reduction in employee numbers, and the phasing out of the contingent workforce are all necessary steps in this process, Royal IHC said.
The company also noted it has agreed on an appropriate redundancy plan with the unions.
Now that the new organisational structure is in place and conditions for a sustainable future have been created, Chairman of the Supervisory Board Jaap Huijskes has stepped down.
Commissioner Menno Snel took over as Chairman of the Supervisory Board from 1 November.