Class Societies feel the pinch

Lloyds Register is making over 400 people redundant at its UK headquarters and while both DNV and GL has instigated a number of cost cutting measures. The redundancies at LR come as the society is reorganising to devolve more of the management and technical responsibilities to overseas offices.

While the technical staff in the UK will be cut it will not affect the overseas offices and should not impact on the service to shipowners and builders, says the society. The situation will become clearer in the new year.

The cost cutting at DNV has been prompted by a shortfall in profits but will not prompt any redundancies, says the society.

These moves are expected to bring the profits to around NKr170 million ($21 million) against a budget which predicted larger profits than the NKr209 million ($26.4 million) achieved in 1998.

Cost cutting at GL is along the same lines and will not involve redundancies. All the societies are blaming cost pressures due to a weak marine market and DNV also highlight the offshore market.