Naval Group Reveals Cost-cutting Measures due to COVID-19

Naval Group has announced cost-cutting measures like reduction in production activity and cancelling seminars and conventions, to cushion the economic pushback amid COVID-19 pandemic.

The company presented these steps during a Central Social and Economic Committee (CSEC) meeting on April 15.

The savings plan involves toning down of production activity, and reduction of the cost base in connection with the foreseeable reduction of the revenues. A series of cost-saving and cash management measures will include cancelling seminars and conventions, limiting travel, reducing the use of temporary staff and subcontractors, prioritizing training and recruitment related to production activities and critical skills, limiting external service orders to what is strictly necessary, and postponing non-priority investment projects.

To keep up with the schedule, the company plans on implementing certain measures like organisation of work in separate teams, the redesign of workspaces to respect a distance between people, and the wearing of masks for operations in confined spaces.

Naval Group has also proposed creation of solidarity fund- while half of the employees’ salary is shouldered by the company, the other half will be contributed by donations of days off from employees, on a voluntary and confidential basis.

In addition, in view of the slow-down in activity, all employees who are not required to work full-time in April have been asked to take days off or rest.