Cermaq makes 259 workers redundant
One of the world's leading fish farmers, Cermaq, has announced 259 redundancies in Chile.
In a brief statement released on Friday, the Mistubishi-owned company, which farms in Norway, Chile and Canada, said: "Due to an internal restructuring process, 259 people from different areas, have ceased to belong to the organisation.
"This process is part of a global plan of the company, with the purpose of making its operation more efficient in Chile, ensuring sustainability in the long term."
The statement continued: "Restructuring processes are always difficult, but necessary to make the operation more competitive and sustainable over time, in direct benefit to the workers. Those who leave us have contributed with their effort to the consolidation of the company and Cermaq will provide support, through training courses, for their re-employment."
Company strategy
According to its annual report for the year ended March 31, 2016, Cermaq Group's net income after tax for the financial year 2015 (ending March 31, 2016) was NOK 110.4 million, compared to a loss of NOK 88.6 million for 2014, although the years cannot be directly compared as a change from the calendar year to the financial year means the 2015 figures covered 15 months.
The report said Chilean results were negatively impacted by unfavourable exchange rates, as well as low price realisation and biomass losses due to the bacterial disease SRS".
In the report the Cermaq board of directors stated: "The management team and the Board prepared a new company strategy that will bring Cermaq closer to the consumer in the value chain, as a reflection of the fact that the farmed salmon market is becoming more differentiated. Whereas the exchange rates were favourable for Cermaq Norway, the Chilean results were negatively impacted by unfavourable exchange rates, as well as low price realisation and biomass losses due to the bacterial disease SRS."
Cermaq has been cutting back staff for a few years. According to its 2016 report, as of 31 March 2016, Cermaq Group employed 2,693 persons compared to4,134 in December 2014. Of the group’s employees, 500 were employed in Norway and 2,193 outside of Norway.
