RAI Amsterdam is looking at a loss of 20 million euros this year, and the expectations for 2021 are uncertain, according to the company. Therefore the RAI has submitted a request for advice to the works council for a reorganisation. The goal is to make the RAI financially healthy. It is aimed at ensuring the continuity of RAI Amsterdam and the related jobs.
To restore RAI Amsterdam’s financial health, the company needs to make cuts to the tune of 25 million euros. 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.
RAI Amsterdam has been closed for exhibitions, conferences and events since the Dutch government’s measures were announced on 16 March. The RAI normally welcomes some 1.5 million visitors a year to around 500 events and hopes were high that 2020 would be its busiest year to date.
Despite the more lenient measures implemented by the government on 1 July, to continue its activities the RAI depends on the ability and willingness of visitors, exhibitors, organisers and partners to travel, the company says. Other challenges include the hesitancy regarding event size, frequency and public capacity, never mind the risk of additional government measures should there be a second wave of coronavirus.
In compliance with the regulations set by the authorities and its own protocol, the RAI can again host and facilitate live events as of 1 July. While physical meetings and events will certainly continue, the RAI expects the balance between physical meetings and virtual/digital meetings to shift.