P&O Ferries has made 800 members of staff redundant with immediate effect, the firm has confirmed. The company said that it was not currently a “viable business”, facing losses of £100m.
Earlier today the company suspended its services due to a company announcement, which caused confusion among passengers who had trips booked with the firm and major disruption at ports, including at Dover.
According to reports, staff are set to be replaced with agency workers to keep the ferries running. ITV's Shehab Khan said on Twitter: "Understand that all sailing staff at P&O Ferries have been made redundant with immediate effect. The company will use an agency to keep their ferries running and current staff will be able to apply to the agency for work."
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After initial speculation, the firm has confirmed the number of staff who are being made redundant. It said that “swift and significant changes” are needed to ensure the company’s future.
A spokesperson for P&O Ferries said: “P&O Ferries plays a critical role in keeping trade flowing, supply chains moving, and connecting families and friends across the North and Irish seas and the English Channel. We have been at the heart of this service for years and we are committed to serving these vital routes.
“However, in its current state, P&O Ferries is not a viable business. We have made a £100m loss year on year, which has been covered by our parent DP World. This is not sustainable. Our survival is dependent on making swift and significant changes now. Without these changes there is no future for P&O Ferries.
“These circumstances have resulted in a very difficult but necessary decision, which was only taken after seriously considering all the available options. As part of the process we are starting today, we are providing 800 seafarers with immediate severance notices and will be compensating them for this lack of advance notice with enhanced compensation packages.
“In making this tough decision, we are securing the future viability of our business which employs an additional 2,200 people and supports billions in trade in and out of the UK. And we are ensuring that we can continue serving our customers in a way that they have demanded from us for many years.”
