- The rising financial crisis due to coronavirus pandemic has forced the Copenhagen Malmö Port (CMP) to terminate 55 employees in Copenhagen.
- It was to secure the future functioning of CMP as a port operator and manager of critical infrastructure.
- The layoffs concern both dockworkers and office workers.
A recently published article in CMP Copenhagen Malmo Port website, explains the tough times the port management faces. As a result, they are forced to terminate 55 employees in Copenhagen.
40 employees terminated
CMP already gave notice of termination in April to 40 employees in Malmö. It is considered as Scandinavia’s largest port terminal for new cars. It has been particularly hard hit by the global downturn in vehicle production. In fact, the crisis has resulted in a marked decline across all of CMP’s business areas.
The forecasts continue to indicate that the 2020 cruise season will be completely cancelled.
While several other business areas are experiencing up to a halving in volumes managed. Therefore, despite a comprehensive savings plan and the utilisation of government support packages, CMP is in a situation where it is forced to announce further layoffs.
“It really hurts me to have to announce further layoffs in CMP. The object is, and of course has always been, to minimise the consequences of the crisis as much as feasible. Unfortunately, the situation we are in requires us to adapt the organisation in order to secure our future to be able to operate as a port,” reports Barbara Scheel Agersnap, CEO, Copenhagen Malmö Port AB.
Measures not sufficient to curb the financial loses
CMP has gone to great lengths to minimise the extent of the impacts of the crisis. However the effects of the initiatives that have been put into motion unfortunately are not sufficient enough to cover the short-term financial losses that CMP is experiencing and continues to foresee over a longer term.
“The decline in the number of port calls and volumes managed, and thus declines in revenue, are simply too substantial to be dealt with by the measures we have previously set into motion. Unfortunately, with the uncertainty surrounding the length and depth of the crisis, and the impacts on our underlying markets such as cruise tourism, the supply of energy, consumer goods and raw materials, we are compelled to act now and announce terribly bad news such as this. We quite simply do not have any other alternatives remaining available to us in the acute situation we find ourselves in. We will make every effort and do everything within our power so that CMP will return to that good condition it was in, including as a workplace. This is vitally important for Danish trade – now and as a way out of the crisis – and we will do our utmost to provide the same good service to our customers even if we have to say goodbye to talented employees,” concludes Barbara Scheel Agersnap.
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Source: CM Port
