Meyer Werft, the German cruise ship builder, has furloughed its staff for six weeks, starting on20 July, and ceased production as a result, media reports say.

“Over the next five years, Meyer Werft needs to save €1.2 billion ($1.3 billion) due to cruise firms canceling and stretching their orders for new liners,” Deutsche Welle reports on its website.

The company has three deliveries nearing completion – Iona for Carnival Corporation & plc unit P&O Cruises that has already left the yard, but which has not yet been handed over; Spirit of Adventure for Saga Cruises, also in the UK plus Odyssey of the Seas to Royal Caribbean International unit of Royal Caribbean Group.

Delivery of the last named ship has been pushed to April 2021. The vessel also suffered a fire onboard in June, a report on royalcaribbeanblog.com said.