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Streamlining and organizational changes at Eimskip

Streamlining measures will be made within Eimskip today. For the past fifteen months the Company has taken many steps on its journey to streamline and integrate its operations, and a part of the measures taken today are linked to that journey. In addition, the uncertainty both in the Icelandic and global economy due to the COVID-19 pandemic has affected the extent of these measures.

These streamlining measures include a reduction of 73 FTE’s within Eimskip, thereof 47 in Iceland. Direct redundancies are 54, thereof 39 in Iceland.

The reduction of FTE’s affects all layers of the Company including the management.

Edda Rut Björnsdóttir, who has served as Head of Marketing & Communications for the past year, will take on the role of Executive Vice President of an integrated division of Human Resources, Marketing and Communications. Edda has a business degree and over 20 years’ of experience within the corporate sector, thereof 12 years at Íslandsbanki. Elín Hjálmsdóttir, who has served as Executive Vice President of Human Resources, will at the same time resign from the Company. Eimskip would like to extend a gratitude to Elín for her valuable contribution to the Company throughout the years.

Furthermore, changes will be made within the Import Department in Iceland which will be split up in order to mirror specific focus on larger companies on one hand and small and medium sized companies and individuals on the other. This will sharpen the import services offered to these different customer groups, enabling the Company to serve them better and to offer total transport solutions and logistics services.

Vilhelm Már Þorsteinsson, CEO:

“The Company’s journey of integrating and streamlining the operation has not been easy, especially not regarding reduction of employees. It has nevertheless been important considering the financial results in the last couple of years. The COVID-19 pandemic has also highly increased uncertainty that cannot be disregarded. By taking these measures we strengthen the financial position of the Company and its operations going forward. It should also be kept in mind that the Company has invested considerably in automation and reformation of processes and working procedures which supports these measures. We do not foresee further measures of this scale in near future.

At the same time as we execute these painful measures, I have asked the Board of Directors to reduce my salary by 10% and thereby showing that these streamlining measures affect all layers of the Company.

Despite these unprecedented times Eimskip’s logistic chain is working, our vessels are sailing, our trucks are driving, and our ports of calling are open. We are very conscious of Eimskip’s role as an important infrastructure company in the North Atlantic and we will continue to provide excellent service to our customers.”

For further information please contact Edda Rut Björnsdóttir, Executive Vice President of Human Resources & Communications via phone (+354) 825-3399 or investors@eimskip.is.