Freight carrier Stena Line is set to axe up to 80 of its staff after an internal review found the company’s current set-up was “too big and expensive” in relation to its revenue.
CEO Paul Grant announced the redundancies in an email to all staff on Monday, in which it said the business was launching a programme to “future proof the company”.
It follows a review carried out by Stena Line focused on how to secure its core business and use its resources effectively.
“Unfortunately, the rising external competition and increasing cost pressure, in combination with a significant future investment need, mean redundancies will be necessary,” said Mr Grant.
“The initiative to carry out a review of our current organisational set-up and look at how we can reduce our cost base, was launched a few months ago. It came as a result of the challenging times we are currently facing.
“Cost pressure due to higher inflation has led to our customers having less money to spend and with the introduction of the European Emission Trading Scheme (ETS), increasing our prices, we see a decline in volumes for both Travel and Freight. This has led to increased pressure on our net margin.
“Moreover, the market growth we planned for in 2024 has not turned out as expected and our travel and onboard sales business suffered during the summer season.”
The email also revealed the company’s profit was “way behind target” and said the overall conclusion of the review was that Stena Line had “grown more than expected over the past few years”.
“Our set-up is today too big and expensive in relation to our revenue,” said Mr Grant.
“A program to future proof Stena Line is being launched today and it includes reducing cost, making priorities when it comes to investments and redundancies.
“The workforce will in total be reduced with 80 positions during the beginning of 2025. On top of that we will let 30 consultants leave the company. This is subject to consultations with the unions and work councils.
Stena Line CEO Paul Grant
“The redundancies will mainly affect employees in support functions and consultants.”
The email also indicated the company would become more “restrictive with recruitments” and prioritise future investments in employees’ and customers’ safety.
Consultations with trade unions are due to begin, with Mr Grant estimating that process would take a number of months.
“Our ambition is that everyone in the organisation – affected or not – should know their situation no later than January 31 2025,” he added.
“We will do our outmost to take care of the colleagues that will have to leave the company, through external bodies providing career guidance and support.”
CEO Niclas Mårtensson said the decision had been taken with a “heavy heart”.
“Stena Line has been a successful company over the past few years; however, we need to ensure a lower cost base to be able to future proof the company,” he said.
“With 40 vessels in Europe and the Mediterranean, we have significant sustainability challenges ahead of us. The program we are launching today is necessary if we are to tackle those challenges, as it will enable us to make necessary investments for the future.”
The Transport Salaried Staffs’ Association (TSSA) has been approached for comment.