Ferry company Stena Line has announced plans to make 150 of its UK and Ireland employees redundant, while a further 600 will be furloughed.
The company said it was an “urgent measure” and an “unavoidable response” to the on-going global Covid-19 crisis, that has had a hugely damaging effect on travel and transport across Europe.
Since the Covid-19 crisis began, Stena Line said it has experienced a “large decline” in travel bookings and freight volumes.
It estimated that passenger figures will not recover until "well into 2021", and that as a result of the significant reduction in revenue, it is forced to take tough decisions to cut costs and ensure that “vital supply lines” of essential goods to the UK and Ireland are protected.
Ian Hampton, director of Stena Line, said “The Covid-19 crisis has meant that Stena Line is experiencing a significant decline in passenger and freight volumes across all its 20 European routes.
"We are having to make some very difficult decisions, that we hoped we would never have to make.”
Stena Line said the announcement of furlough and redundancies relates to both UK and Ireland shored-based and sea-based employees, including those working on vessels on the Irish Sea and North Sea.
It follows a reduction of the number of sailings on several routes - several vessels have also been taken out of service.
It’s not yet known which employees will be affected by the move.
Mr Hampton added: “In order to secure the continuity of our freight operations, w e have no choice but to reduce our costs. We are committed to keep vital supply lines open for UK and Ireland.
"Regrettably we must furlough employees on temporary paid leave and make redundancies, as we adjust to this new reality. We will do everything in our means to ensure essential supply lines stay operational during what is a very difficult time for the company and the countries that we serve.”
The firm added that with “no end to the crisis in sight”, it is “planning for the long-term”.
Consultation on furlough and redundancies will start on Monday with the trade unions.
