TALLINN – Estonian listed shipper Tallink Grupp on Wednesday notified the Estonian Unemployment Insurance Fund that it has commenced a collective redundancies process in one of its subsidiaries, TLG Hotellid (Tallink Hotels), and has notified employees of the start of the process.
As a result of the process, approximately 130 positions will be made redundant in TLG Hotellid in Estonia and Latvia. In addition, the group's management has critically evaluated the resource requirements of onshore personnel in the next six to twelve months, and some redundancies are also expected in the company's other subsidiaries and business areas where the resource requirements have significantly reduced due to the current circumstances, Tallink said.
The only hotel currently still partly open within the Tallink Hotels chain is Tallink Express Hotel. According to the assessments by the company’s management, it will take at least one year to a year and a half until the accommodation sector is able to recover after the crisis, therefore also the staffing requirement for the hotels in the near future will be more modest than usual.
"Today, we are in the situation where we had to very quickly, yet at the same time, very constructively and with good foresight evaluate our need for staffing for the period of six months to one year to come, without knowing exactly what the next six months to a year will actually bring," Paavo Nogene, CEO of Tallink Grupp, said.
Latvia's Tallink Hotel Riga is operated by TLG Hotell's subsidiary RLG Hotell Latvija.