Finnish shipbuilder Meyer Turku is making 450 workers permanently redundant as the effects of the coronavirus pandemic become more apparent.

The cruiseship specialist said it had started negotiations over temporary layoffs in the middle of March.

"Since then, the coronavirus pandemic-influenced market situation of the shipyard's customers is coming visible and is now forcing Meyer Turku to change the scope of the negotiations," Meyer Turku added.

Another 900 staff members will face other restructuring measures, including temporary furloughs of differing lengths and work-time adjustments.

The company had an average of 2,386 employees in 2019.

All worker groups are part of the negotiations, the yard said.

The cruiseship sector has been devastated by the outbreak, with vessels idled and cruise majors seeking extra funding to stay afloat.

Situation changed totally

Chief executive Jan Meyer said the coronavirus pandemic has "unexpectedly and totally" changed the situation facing the sector.

"We are facing the fact that the corona-caused pause in cruising requires to stretch the order book. We are currently discussing the details with our customers," he said.

"This new situation will force us to take painful adaptation measures to secure a sustainable future for Finnish cruiseship building and the network."

The company is building seven large cruiseships for Royal Caribbean, Carnival and TUI, due between October this year and 2025.

"Our preparations have been for the future. Now unexpectedly that future has changed and we have to adjust to that new future," Meyer said.

"Instead of a further ramp-up from one to two large ships delivered per year until 2023, the estimation is now that Turku shipyard will in the future build one large cruiseship per year and not further ramp-up."

The exact changes to the building and delivery times of the seven ships are still subject to negotiations.

The yard also revealed 2019 financial figures on Tuesday that showed that it suffered a net loss of €109.7m ($117.59m) last year, compared to a profit of €29m in 2018.

Revenue was €1.14bn, up from €976m the year before.

The last ship it delivered, Carnival Corp's Costa Smeralda was delayed by two months to last December.

The 180,000-gt LNG-powered vessel had been set to start a Mediterranean cruise programme in October.

The yard blamed the "high complexity and sheer size" of the ship for the delays.

The 2019 losses are mainly related to the delayed delivery, and cash reservations for the coming years, Meyer Turku said.

Carnival was expecting LNG sister ship Costa Toscana from Meyer Turku in 2021.

In October, it emerged that the shipyard was hit by 21 cases of pneumococcal pneumonia among workers finishing off Costa Smeralda.

Vaccinations were carried out at the yard following the outbreak.

German ferry shipbuilder Flensburger Schiffbau filed for insolvency this week.