Germany’s Meyer Werft shipyard has suspended production due to a decrease in orders amid the global Covid-19 pandemic.
The shipyard is known for the construction of luxury cruise ships.
The company said the pause in operations as an extended company holiday, which is scheduled to last until 30 August.
A spokesperson added that it is continuing the work on two ships.
Meyer Werft plans to save approximately €1.2bn ($1.3bn) in the next five years as cruise ship companies have started to cancel or stretch the orders for new ships.
The company hopes to receive aid from the Government of Lower Saxony state and the Government of Germany.
Meyer Werft owner Bernard Meyer said that the company will have to fight to survive during its 225th anniversary year.
Over 3,000 workers at the shipyard have not yet received their vacation pay, which totals €14m ($16.04m). The company expects to pay later this year.
It is also planning to shift to part-time working hours after agreements with staff representatives.
The Covid-19 pandemic has majorly affected the tourism industry. Some cruise companies have suspended operations since March.
Meyer Werft is currently carrying negotiations with customers for the extension of orders.
The company is currently building Odyssey of Seas, Royal Caribbean’s new cruise ship. The cruise ship operator has postponed the introduction of the ship until next year.
In June last year, Meyer Werft completed its second newbuild ship of the year by sending its Spirit of Discovery vessel to UK-based cruise line Saga Cruises.