Iceland construction company lays off 27 employees in Westfjords due to operational challenges

Last week, 27 employees were laid off by a major construction company in the Westfjords of Iceland due to a lack of project opportunities and changes in the company’s ownership structure. The firm, which has been involved in significant infrastructure projects, including the construction of two bridges at Klettháls expected to finish by the end of the year, cited challenging operational conditions as the main reason for the layoffs.

The layoffs were officially communicated on August 30, consisting of 25 staff members and two owners. The union representing the workers received a notification indicating the layoffs were part of a standard procedure relating to operational difficulties, restructuring, and a shortage of raw materials. The notice also stipulated a severance period for employees ranging from one to three months.

Finnbogi Sveinbjörnsson, the head of the local labor union, expressed his disappointment over the limited communication from the company’s owners, which he found surprising given their historically good relations. The union has offered to hold a meeting with affected employees to provide support and guidance, but there has been no response from the company.

This situation highlights the broader challenges faced by businesses in the region, particularly as they navigate ownership changes and the pressures of a fluctuating market.