Hafnarfjörður to cut 23 jobs as finances worsen

Hafnarfjörður will eliminate 23 jobs as part of cost-cutting measures, the town’s mayor, Þórður Þórarinsson, said in a letter to staff, according to mbl.is.

The positions amount to 21.6 full-time equivalents. Three employees will be offered new jobs, leaving a net reduction of 18.6 full-time equivalents.

Þórarinsson described the decisions as difficult and said the town’s financial position had deteriorated significantly. “Unfortunately, layoffs could not be avoided,” he wrote, adding that the municipality had spent recent months assessing its finances and looking for ways to improve its operations while first pursuing less severe measures.

The cuts affect management, specialist and support roles across the municipality. They will mainly involve administration, specialist positions and internal services. The stated goals are to reduce costs, simplify the organisation and protect core services for residents.

Last month, mbl.is reported that Hafnarfjörður had recorded a loss of 2 billion Icelandic krónur in the first half of the year, after previously forecasting a surplus of nearly 900 million krónur for the same period. The layoffs are part of a broader effort to strengthen the municipality’s finances.