BUCHAREST (Romania), August 5 (SeeNews) – Dutch group Damen said on Wednesday it is laying off 870 employees at its Galati and Mangalia shipyards in Romania due to economic difficulties caused by the coronavirus (Covid-19) pandemic and low oil prices.
The employees who will be laid off are mainly working in the medium-sized ships division, Damen said in a statement.
The group will also make redundant 173 of its workers in The Netherlands.
"(...) the low price of oil has partially led to a slowdown in offshore activity. This factor, coupled with the consequences of the Covid-19 epidemic, leads to the need for short-term organizational changes meant to ensure the company's adaptation to the new reality. As a result, the group is laying off around 1,050 employees," Damen said.
Damen said that the number of layoffs could be limited through internal mobility projects within its subsidiaries.
"We do not rule out the possibility of other organizational changes proving necessary. They all are difficult measures, with an impact on both our family business and our employees. However, the changes are necessary in order to maintain a healthy climate in the company and to benefit from the good prospects of potential long-term projects in various sectors of the shipbuilding and repair market," the statement reads.
Located in Galati, a port city on the Danube river, Damen Shipyards Galati employs 2,200. Damen Shipyards Mangalia is jointly owned by the Romanian state and Damen and employs 1,800.
Damen Shipyards Group operates 36 shipbuilding and repair yards, employing 12,000 people worldwide. Damen has delivered more than 6,500 vessels in more than 100 countries and delivers some 175 vessels annually to customers worldwide.