Dutch shipbuilder Damen Shipyards has announced it will cut 225 jobs in the Netherlands for efficiency reasons. Compulsory redundancies have not been ruled out. Trade union CNV calls the plans a ‘cold shower for employees’.
Damen states it is the next step in implementing its strategy to make its organisation simpler and more efficient. The 225 layoffs are planned across various Damen companies in the Netherlands over the next twelve to eighteen months. The company currently employs about 4000 people.
Damen expects that a significant proportion of this reduction can be achieved through natural job attrition. However, compulsory redundancies cannot be ruled out. It is not yet known which divisions will be affected or whether the job cuts will involve office staff or shipyard workers.
Also read: Continued delays could cost Dutch Navy and Damen dearly
Changing circumstances
The environment in which Damen operates continues to change. Markets are highly competitive, while geopolitical developments affect customers, suppliers and the supply chain. This next step in Damen’s strategy is intended to ensure that the company remains healthy, competitive and future-ready over the long term.
Arnout Damen, CEO of Damen Shipyards Group: ‘This is a difficult message, especially given how hard our colleagues have worked in recent years to build a stronger Damen. It is precisely from this stronger foundation that we also need to look ahead. We are not changing course. This is the next step in implementing our strategy: building a stronger and more efficient Damen that can continue to invest, compete and respond to the needs of our customers. Knowledge, expertise and entrepreneurship will remain the foundation of Damen.’
In June this year, Damen lost the order to build F126 frigates for the German navy. The German Ministry of Defence cancelled the F126 project because of significant delays, cost overruns and what it described as unforeseeable risks. The shipbuilder is now seeking almost EUR 4.7 billion in damages from the German government.
Also read: Damen seeks EUR 4.7 billion over cancelled F126 project
CNV: ‘Damen restructuring comes as a cold shower’
According to trade union CNV, the announcement ‘comes as a cold shower for employees.’ Tom Zwijnenburg of trade union CNV adds: ‘Everyone here is working incredibly hard to keep Damen on course despite changing circumstances. So it hits hard to hear that you could become a casualty of an efficiency drive.’
Because compulsory redundancies have not been ruled out, the trade union will try to ‘ensure that as many people as possible can be redeployed within Damen’s various divisions,’ adds Zwijnenburg. ‘And for those who ultimately lose their jobs, there must be a good social plan to cushion the worst effects.’
Also read: Damen adds container feeder to vessel portfolio
Social plan
Damen has invited the trade unions to enter into discussions on a social plan. The relevant employee participation and consultation procedures will be followed with due care. The works councils have been informed of the proposed changes.
Damen further states that in recent years, it has ‘sharpened its market approach, improved risk management and further optimised collaboration across the organisation. This has created a stronger foundation and delivered better, more predictable results. Building on this foundation, Damen will continue to invest in its people and in technology, including IT, digitalisation and AI.’
Picture: Damen Shipyards Gorinchem (© S.J. de Waard / CC-BY-SA-4.0 via Wikimedia Commons).
Also read: Damen undersigns European maritime innovation agenda 2050
