From Iceland – 403 Blue Lagoon employees made redundant

Nico Borbely

The Blue Lagoon company has announced an official decision to lay off 403 of its employees at the end of next month, reports Vísir. The salaries of directors and employees will subsequently be reduced.

The company’s notice said the influence of the coronavirus pandemic had been “much more widespread and prolonged than expected,” prompting the decision to take the measures in question.

The Blue Lagoon, however, hopes to be able to rehire its employees who will be laid off “when external circumstances change for the better”. The declaration further specifies that the salaries of the remaining employees will be reduced, notably for directors and managers, by 30%, 25% for executive directors and less for other employees.

It was also made clear that the Blue Lagoon plans to reopen all Blue Lagoon establishments on June 19, after being closed for nearly three months. The announcement stated that the company had made virtually no profit during this period.

“The goal of the company’s latest decisions is to get it through the uncertain times ahead. As a leading company in the Icelandic tourism industry, the Blue Lagoon intends to participate fully in meeting demand on the ground when the situation improves sufficiently.

A staff meeting was announced by the Blue Lagoon yesterday scheduled for this morning as the actions in question may have been announced. Vísir reported that 164 Blue Lagoon employees had already been laid off at the end of March due to the economic repercussions of the coronavirus pandemic.

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