Meyer Werft cuts hundreds of jobs
Meyer Werft Cruise Shipyard is missing billions. The announced harsh restructuring plan turns out to be less drastic than anticipated. The company also fulfills a key condition to receive high state aid.
At the crisis-stricken Meyer Werft shipyard in Papenburg, fewer jobs are being cut than initially planned by the company. Instead of the initially planned reduction of 440 jobs, now 340 jobs will be eliminated, as the works council, IG Metall union, and the company management announced at a joint press conference.
The job cuts should ideally happen without workforce redundancies. 100 temporary positions will expire, and the remaining positions will be reduced through a voluntary program. In return, there will be a minimum employment for 3,100 employees until 2030. An supervisory board and a works council at the corporate level will also be established. The company headquarters will be moved back from Luxembourg to Germany.
CEO Ralf Schmitz had announced a harsh restructuring plan and demanded the elimination of 440 jobs. This demand met resistance from the works council, IG Metall, and the state government.
Financing gap of 2.7 billion Euro
Despite a full order book, the Emden-based traditional company is fighting for its existence. The reason lies in the aftermath of the Corona pandemic, when the international tourism industry came to a standstill. The company was also taken by surprise by price increases due to the Russian attack on Ukraine. By the end of 2027, the company must fill a financing gap of 2.7 billion Euro.
Negotiations are ongoing as to whether the Federal Government and the state of Lower Saxony will provide guarantees. With the relocation of the company headquarters to Germany, as well as the establishment of a supervisory board and a works council at the corporate level, Meyer Werft also meets the key conditions that Lower Saxony's Minister President Stephan Weil set for potential state aid.
- The state of Lower Saxony, where Meyer Werft is based, is currently in negotiations to provide guarantees for the shipyard, considering its financial struggles and the need to fill a substantial financing gap of 2.7 billion Euro by 2027.
- As part of the agreed restructuring plan, IG Metall union and company management decided to move Meyer Werft's headquarters back to Germany, which aligns with the key conditions set by Lower Saxony's Minister President Stephan Weil for potential state aid in supporting the shipping industry.
- Despite the financial challenges faced by Meyer Werft's cruise shipyard in Lower Saxony due to the impact of the Corona pandemic on international tourism and the subsequent price increases resulting from the Russian attack on Ukraine, shipyards like this one play a significant role in the local economy and the German shipping industry, as demonstrated by the construction of cruise ships such as the ones produced by Meyer Werft.
