President and CEO Jakob Riis says:
“The dismissals are made in order to adjust the company to expected market demands following COVID-19. While we see the demand for Falck’s services slowly returning, it is at a lower level compared to before the COVID-19 outbreak and the downturn of the global economy. In addition, Falck’s underlying business has been declining due to the expiry of a number of contracts.”
In general, Falck is resilient towards economic fluctuations in society; however, the company is affected in the pay-on-use part of the business where revenue depends on the level of activity. This is e.g. the case in Airport Assistance, Patient Transport, Roadside Assistance and Healthcare Services in the Nordic countries.
“We deeply regret having to part with highly qualified employees. During the Corona pandemic, many of our employees made extraordinary efforts as part of their daily job. In other parts of the business, demand has fallen significantly and only returns slowly to a new, lower level. We have an obligation to keep Falck financially sound, and capable of investing in the provision of market-leading services to its customers, as well as being an attractive workplace for its employees,” says Jakob Riis.
Falck has initiated consultations with employee representatives in accordance with regulations in the markets where the dismissals are taking place. The actual dismissals in Denmark will take place later in June.