Royal IHC Plans Workforce Reduction
Dutch shipbuilder Royal IHC has announced its plans to cut 1,100 temporary and 487 permanent jobs as a direct result of the rapidly deteriorating market.
The company will close two of their four manufacturing locations, including the facility at Hardinxveld and all production work done near the company’s headquarters outside of Dordrecht, Zuid-Holland, leaving the Kinderdijk and Krimpen aan de IJssel facilities intact, IHC announced yesterday.
According to the labor union, this represents a loss of almost 20% of total workforce within the organization.
Economic developments in the markets in which IHC operates forced the company to take the action, said IHC in yesterday’s release. In particular, the decline in oil prices and significant drop in newbuild orders were some of the main reasons for the job cuts.