Blue Lagoon to Reopen Following Second Round of Layoffs Skip to content

Blue Lagoon to Reopen Following Second Round of Layoffs

By Yelena

blue lagoon Iceland
Photo: Blue Lagoon.

The Blue Lagoon will lay off 403 employees at the end of this month, RÚV reports. The popular tourist destination closed its doors in March due to COVID-19, but plans to reopen on June 19, four days after Iceland’s scheduled reopening of the country’s borders. The Blue Lagoon was criticised in March when it let go 164 employees and sought government support to pay remaining salaries, despite making large profits and paying out €30 million (ISK 4.5 billion/USD 33.1million) to investors last year.

In a press release, Blue Lagoon representatives stated the layoffs were a response to the contraction in tourism and the uncertainty of the coming months. The employees who remain at the company will endure salary cuts: the salaries of the company’s CEO and board will drop by 30% and the managing director by 25%. Other employees will see smaller cuts to their salaries.

The Blue Lagoon employed 764 workers before the first round of layoffs in March. The two rounds of layoffs collectively encompass nearly 75% of those employees.

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