Hoegh Autoliners is cutting 40 jobs at its head office in Oslo.

The move, which comes three months after the departure of two top executives, shrinks the headcount at its headquarters to 70.

The cuts come as the car-carrier operator seeks to navigate difficult market conditions.

Chairman Leif O Hoegh said: “We regret losing good colleagues who have contributed to the company’s progress for many years and thank them for their hard work.”

Seeking efficiencies

He said that in a demanding market, the company is seeking operational efficiencies.

“Some activities will be discontinued, some automated and some performed in new locations,” he explained.

The company is set to restructure its organisation from the ground up through new technology solutions and more efficient work processes, Hoegh said.

He said the modernisation would include reducing emissions, citing its Horizon-class design that had "improved per cargo energy use by 40% in recent years”.

Family holding company Leif Hoegh & Co of Norway owns 61.25% of the shares in Hoegh Autoliners, while the remainder are held by AP Moller-Maersk of Denmark.

Last year, shareholders decided to inject $50m in fresh equity into the company.

Heavy losses

Hoegh Autoliners has been plagued by heavy losses. Last year, it logged a pre-tax loss of $55m against a $24.7m loss in 2017.

The car-carrier market has been under pressure for most of the past 10 years, which has hit profitability and led to unusually low orderbooks for most players.

In September, two key employees left Hoegh Autoliners.

Company chief executive Ivar Hansson Myklebust was replaced by Leif Hoegh veteran Thor Jorgen Guttormsen. Chief financial officer Ingrid-Due Gundersen was replaced by Andreas Enger from consultancy Monitor Deloitte.

Hoegh Autoliners is a leading car-carrier operator, with a fleet of around 50 vessels with an average age of about 10 years.