MacGregor, a deck equipment provider and a subsidiary of Cargotec, will start cutting workforce to respond to the deteriorating market situation caused by the low oil price and low number of new merchant ship orders. More than two hundred workers will be let go.
MacGregor is planning to reach savings by reviewing resourcing and making the necessary adjustments with a plan to reduce the use of external workforce and the number of own personnel, Cargotec said in a press release today.
The planned measures are estimated to have an effect of reducing some 220 employees globally.
According to the press release, the possible measures for the personnel reductions will be initiated locally according to the requirements and legislation of each country. The target is to achieve annual savings of EUR 20 million.
MacGregor employs globally approximately 2,750 persons in 33 countries, with the biggest number of employees in Norway 630, Germany 460, China 350 and Sweden 300. The countries where the impact of the planned measures is estimated to be biggest are Sweden, Singapore and Norway.
The initiated measures are estimated to create restructuring costs of EUR 5 million in 2015.
Cargotec’s President and CEO Mika Vehviläinen said: “We do not expect to see rapid improvement in MacGregor’s market situation, which is why we have added a savings programme to our current programmes in order to safeguard the profitability of this business area.”