Icelandair Lays Off 240 and Reduces Employees’ Hours Skip to content
Icelandair
Photo: Golli.

Icelandair Lays Off 240 and Reduces Employees’ Hours

Icelandair will lay off 240 employees and temporarily reduce the working hours of 92% of its remaining staff, RÚV reports. The measures are intended to increase the company’s ability to cope with the impact of the COVID-19 pandemic.

The total number of full-time positions at Icelandair Group averaged 4,715 in 2019. The wages of those employees who remain in full-time work will be reduced by 20%. The company’s executives will receive a 25% pay cut and the CEO and board members will receive a 30% pay cut during this time.

The company has temporarily closed several of the hotels in its nation-wide chain, both in Reykjavík and in the countryside, in response to a sharp reduction in the number of guests. Hilton Reykjavík Nordica, which is part of the chain, remains open. A staff member at the chain’s Mývatn location was diagnosed with COVID-19, leading to that hotel’s closure.

Icelandair stated that the company had recently explored all possibilities to reduce its outflow of capital, such as renegotiating agreements with suppliers and financers.

Sign up for our weekly newsletter

Get news from Iceland, photos, and in-depth stories delivered to your inbox every week!

* indicates required

Subscribe to Iceland Review

In-depth stories and high-quality photography showcasing life in Iceland!

Share article

Facebook
Twitter