Ferry firm Tallink Silja is to initiate co-determination talks with employee representatives in an aim to reduce up to 120 ground operations jobs, the firm announced on Monday, adding that the job cuts were due to economic impacts of the coronavirus crisis.
The negotiations will affect a total of 370 ground operations staff members, according to the company.
Meanwhile, the temporary layoffs of hundreds of its employees are to continue. Nearly all of the company's workforce has been, and remains, furloughed.
The co-determination talks are scheduled to begin on 12 October and expected to last about six weeks. The company said it needs to make the job cuts in order to adjust expenditures in the face of significant declines in passenger volumes, due to coronavirus-related travel restrictions.
The firm said the negotiations may result in redundancies, furloughs, changes to part-time positions, centralisation of the company's operations and changes to the company's organizational structure.
"Constantly changing travel restrictions, governments' different results and different approaches to the restrictions in our home market have virtually brought ship travel to a standstill and kept several of our ships in ports. Therefore we need to quickly adjust our business to ensure the company's financial sustainability and unfortunately we have to begin cooperation negotiations with our personnel," Tallink Silja CEO Margus Schults said in a company statement issued Monday.
"Tourism will not return to its former state for a long time. Previously we estimated that adjusting costs with furloughs would be sufficient, but it will not be enough in the long run. Unfortunately, we also have to make structural changes and reorganise our company. We are in deep trouble and will have to take all possible adjustment measures to cut costs and secure the company's future," Schults said.