RAI Amsterdam reorganises

Gwen Kaufmann - Friday, July 31, 2020    


RAI Amsterdam

RAI Amsterdam has submitted a request for advice to the works council for reorganisation. The goal is to make the RAI financially healthy. The reorganisation is required due to the major impact of the COVID-19 outbreak on the convention centre's operations, as RAI has been closed since March 16, 2020. The reorganisation is aimed at ensuring the continuity of RAI Amsterdam and the related jobs, the management states. RAI is looking at a loss of 20 million euros this year, and the expectations for 2021 are uncertain. To restore RAI Amsterdam's financial health, the company needs to make cuts to the tune of €25 million. This is expected to involve the loss of approximately 125 jobs. RAI Amsterdam currently employs 483 people and compulsory redundancies cannot be avoided. Together with the works council, the RAI hopes to establish a social plan. As the turnover for 2020 will drop significantly, the board and employees will not receive any bonuses or variable remunerations this year. "The outbreak of COVID-19 has had an enormous impact on our operations", comments RAI Amsterdam CEO Paul Riemens. "A reorganisation is an extremely painful decision to have to take but is crucial in order to make the company financially healthy again. We must act now in the interests of the future of the RAI. The corona crisis has significantly affected our reserves, and it is essential that we return to a financially healthy state as soon as possible. That will require us to go forward as a leaner organisation and that will also reduce our risk if a new crisis should arise." The RAI is aiming to realise its long-term strategic masterplan designed to make the exhibition and conference centre ready for the future. This includes implementing a new logistics system as part of the sustainable area development in which the RAI wants to become a green, multifunctional location for business, leisure, public hospitality venues and neighbourhood functions. To realise this plan – which is currently suspended – the RAI is holding meetings with external financers. (kf)     rai.nl/reorganisation

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Markets | Corona Virus | RAI Amsterdam | Netherlands | Europe | venue | reorganisation | COVID-19 | pandemic | loss | cost cutting | job loss | Paul Riemens | masterplan | financers