The temporarily layoffs will affect all the business areas and staff functions, Kongsberg announced last Friday. The group has almost 11,000 employees.
“As a result of the ripple effects of COVID-19 and the extensive measures implemented by various countries' authorities, Kongsberg is experiencing a lower level of activity than planned,” the company stated.
“Travel restrictions, quarantine provisions and other measures to prevent infection are causing difficulties in production and in the customer and supplier chains. The difficulties are especially noticeable in Kongsberg Maritime,” it said.
An international presence is especially important for Kongsberg Maritime, which has equipment installed on some 30,000 ships worldwide. But the COVID-19 situation has restricted global activities and impacted the group’s maritime business.
“Kongsberg Maritime has extensive international operations and is directly affected by the downturn in trade and the global economy. The various countries' travel restrictions especially affect parts of the service and after-sales market,” Kongsberg stated.
“With offices and service systems in 34 countries, project deliveries and a lot of the service assignments are carried out locally. However, the level of activity has been reduced, and it has for instance been decided to put certain non-critical development projects on hold as a way of ensuring liquidity. At the same time, the fall in the oil and gas market may lead to less activity in the offshore market,” the group explained.
Kongsberg Maritime has major operations in Asia, mainly in China, South Korea and Singapore.