Mass Layoffs at Iceland Hardware Store Skip to content

Mass Layoffs at Iceland Hardware Store

Around 100 full-time employees at Húsasmidjan hardware store have been laid off. Some part-time employees have also lost their jobs, but it is unclear how many. The layoffs were announced at a staff meeting yesterday.

According to a statement from Húsasmidjan, the layoffs were unavoidable because of a worsening situation in the construction industry and an unfavorable development of the exchange rate, Fréttabladid reports.

“It was a very difficult day and tomorrow will not be any easier,” union representative of VR at Húsasmidjan, Steinar J. Kristjánsson, told Morgunbladid. “A month ago working hours were shortened and overtime abolished to prevent resignations. Then people hoped that no further rationalization measures would be necessary. But then the construction market collapsed. […] One just has to hope that it will improve next spring and that people can be rehired.”

CEO of Húsasmidjan Steinn Logi Björnsson said that at the beginning of this month, 800 people had been on the hardware store’s payroll. He expects 100 to 200 fewer individuals to be on its payroll after three to four months, after the resignation period has expired.

Björnsson expects mostly part-time staff to lose their jobs in the following months and more employees to be laid off in the capital region than in the countryside.

Click here to read about a recent wave of layoffs.

Sign up for our weekly newsletter

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

Subscribe to Iceland Review

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

Share article

Facebook
Twitter

Recommended Posts