Odfjell - USD 100 Mln in Cost Savings

The Board of Norwegian shipping company Odfjell has approved a restructuring plan which is estimated to improve the company’s net result by in excess of USD 100 million on a yearly basis
within 2016. Odfjell said that the cost saving initiatives envisaged under the plan are related to operating expenses, general and administrative expenses, trade optimisation and bunker consumption. The restructuring will see cutting of 86 jobs in the company’s office in Bergen, of which 32 are already concluded through attrition and early retirement, the company explained.

As informed, organizational changes at the company’s international offices are expected as well, which might result in more job cuts. ” Relocation of administrative tasks and reduction of Northwest European officers on our ships are also elements of this reorganisation,” Odfjell added. The company announced cutting of expenses through a review of all aspects of its business model back in May 2014 aimed at improving its financial operation.