Mowi CEO may face tough choice: Where to cut 1,500 jobs

Mowi, the world's largest salmon farmer and most valuable seafood company, announced it could face a 10 percent staff reduction over the next four years if the company fails to grow, leaving staff wondering just where the cuts may come.

CEO Ivan Vindheim said an overall cost increase across the industry and within the company is "worrying."

The company initiated a cost-reduction program in 2018, delivering significant reductions, but Vindheim said it's clear that further cuts are needed, and staff is the obvious place to look, as well as increased efficiencies.

"We have to look at the whole structure and constantly assess whether the way we are organized is correct," Vindheim said. "But we have to work smarter and use the technology that is available."

Mowi board member and employee representative Jorgen Wengaard said increased digitization, though it has positives and negatives for staff, is not as controversial as it might seen.

"Most employees probably agree that it's high time to make operations more efficient," he said.

"Technology and digitalization are here to stay, and if Mowi wants to keep its position as the world's largest and most sustainable salmon producer, then we have to be at the forefront."

Wengaard noted that the rise in land-based salmon farming, for example, can pose a threat if conventional farmers don't react.

"If it becomes cheaper and better to farm salmon on land, closer to large markets, that could have a major impact on the kind of salmon farming we know today," he said.

Wengaar said employees had not received any information about where downsizing would take place.

In addition to the planned staff reductions, the company reduced harvest guidance and cut its dividend to zero, causing shares of the company to fall by 6 percent on the Oslo Stock Exchange on Wednesday.