Home Business Shipping giant DFDS to axe 650 jobs across European operations as Covid-19 hits trade

Shipping giant DFDS to axe 650 jobs across European operations as Covid-19 hits trade

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Shipping giant DFDS to axe 650 jobs across European operations as Covid-19 hits trade

Shipping giant DFDS is to cut nearly 10 per cent of the 1,000-strong workforce in North East Lincolnshire.

A total of 86 posts have been placed into consultation, with 650 jobs to go across the entire European operations, as the economic impact of coronavirus hits operations.

It comes as the business has seen 12 of the 50 freight vessels it operates laid up at the pandemic’s peak, with trucks staying in yards and volumes significantly down.

The company is anticipating a £200 million hit to the bottom line in 2020, even after taking significant measures.

Andrew Byrne, managing director, said: “The unexpected Covid-19 pandemic left no company in the travel and transport sector unaffected.

“As a ferry and logistics company, DFDS has experienced that passenger numbers, freight volumes and terminal activity dropped dramatically.

“Throughout our network, restrictions are being lifted, manufacturers are resuming operations, and government support measures are ending, and we are now seeing the outlines of a new normal.

Andrew Byrne, managing director of DFDS Seaways.

“However, it will not be a return to the situation before the crisis. We are facing a world with less freight and fewer passengers to carry.

“Consequently, we are adapting our structure, staff and costs to the business that will emerge from Covid-19.”

A total 62 roles will be lost in the Immingham ferries and terminals business, with 24 in logistics in Grimsby – with the firm one of the major movers of seafood in the UK.

Mr Byrne said staff and trade union consultations have begun, and all employees have been advised of the circumstances.

“We regret this situation, which affects many good colleagues. With the measures being implemented, we are confident that it will allow us to regain growth and profitability, maintain our ambitions to deliver excellent customer services and continue being an attractive employer.”

It comes as the great Brexit unknown looms at the end of the year, with the roll-on, roll-off operations at Port of Immingham seen as one of the potential pinch points.

“We will tackle whatever Brexit throws at us when it happens,” Mr Byrne added. “It is still a big unknown what the future looks like. We have undertaken these measures and communicated with our clients and industry partners.”