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Biz News Korea(Eng)
Hyundai Heavy cuts executives by 25% amid prolonged slump in shipbuilding industry
- Collected
- 2016.04.29
- Distributed
- 2016.05.02
- Source
- Go Direct
The group announced on Thursday that it has laid off some 60 executives of its shipbuilding-related units, or 25 percent of whole executives, during its regular reshuffle. “This shows our strong will to keep our company afloat amid nosediving order volume,” an unnamed official at the company said, adding that during its regular shakeup, the company did not add any new executive.
The latest move would lead to a restructuring at the other ailing shipbuilding companies. As the government has demanded DSME to come up with a strong self-rescue plan in exchange for the bailout fund of more than 4 trillion won ($3.5 billion) to save the company, DSME seems to have no choice but to downsize. DSME already reduced 30 percent of its workforce last year. It is also highly likely that Samsung would follow suit after laying off 30 percent of their high-rank employees last year.
The number of employees that would be let go will likely increase in the local shipbuilding sector as the big three shipbuilders are expected to cut jobs at lower levels. DSME plans to cut down 2,300 of its employees by 2019, and Hyundai and Samsung seek to lay off as many as 1,000 workers through voluntary and regular retirement programs.
“The reduction in executives at Hyundai Heavy Industries could be a prelude to a massive restructuring,” said an industry source.
By Park Yong-beom
[ⓒ Pulse by Maeil Business News Korea & mk.co.kr, All rights reserved]