Lay-offs Unavoidable Skip to content

Lay-offs Unavoidable

The downswing in the economy has had a major impact on construction companies. Construction projects have halted in many cases and lay-offs have become unavoidable.

Newly built housing remains unsold and the number of sale contracts has declined by 74 percent since last year.

Gunnar Thorláksson, CEO of BYGG construction company, says that people have been laid off with no replacements hired. Much of the foreign labor that works for BYGG will not return after the summer break. Fréttabladid reports.

Thorláksson blames the authorities for the situation in the construction market. “We have been building in good faith when the authorities suddenly decide to encourage people not to buy. It’s like pulling the plug on an entire industry.”

CEOs at other constructing companies where not as pessimistic as Thorláksson, but admits that the outlook is not so good for the summer and the fall.

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