DFDS axes another 650 jobs due to corona crisis

Ferry company DFDS has announced that it will cut 650 jobs. The cost reduction is part of a larger austerity round, with which the Danish company wants to adapt to the new market conditions.

The outbreak of Covid-19 has hit DFDS hard. Passenger transport in particular is severely affected by the lockdown measures in the various countries. As early as mid-March, it was announced that the company would shed some 600 jobs.

Another 650 jobs are now to be added, 200 of which are in Denmark, the company’s home base. The logistics branch of the company will not be spared either. The shipping company has a total of 8,600 employees.

250 million

‘Our initial response to Covid-19 has been successful,’ says the company. ‘Now we are taking further action to ensure efficiency and long-term growth. At the same time, we continue to look for new opportunities that arise.’

In addition to reducing the number of employees, DFDS also wants to implement IT cutbacks. Furthermore, it wants to streamline various activities in the logistics division. The austerity package is to be implemented in the coming months and will result in an annual cost reduction of 250 million Danish kroner (33.5 million euros). For this year, the cost savings are estimated at 50 to 75 million kroner.

Ebitda

According to DFDS, freight volumes in the second quarter were above expectations in most areas. It therefore maintains its earlier forecast of an ebitda of two billion kroner in 2020. However, the company points out that uncertainty, especially in the passenger segment, is very high. As a result, the pre-tax result could ultimately change significantly this year.

On 12 August, the Danes will present their results for the second quarter.

This article first appeared in Dutch on Nieuwsblad Transport, a publication of SWZ|Maritime’s publishing partner Promedia.

Author: Tom van Gurp