SEOUL, April 21 (Korea Bizwire) – Hyundai Heavy Industries Co., the world’s largest shipbuilder by order backlog, will cut more than 10 percent of its workforce this year as part of its restructuring efforts, industry sources said Thursday.
The Ulsan, South Korea-based shipbuilder is planning to announce its detailed self-help measures, including the planned job cuts and the sale of non-core assets, next week, people familiar with the matter said.
The move comes after the 27,000-member company inked a hefty net loss of 1.363 trillion won (US$1.2 billion) in 2015 as declining orders and delayed deliveries of vessels cut into its bottom line.
“We are considering multiple measures to ride out the worst crisis that we have ever faced. But we can’t provide any undecided details on the (self-help) efforts,” a company spokesman said.
Hyundai Heavy already let 1,500 workers go in January last year through a voluntary retirement program in which workers could quit their jobs in exchange for years of salary in bonuses on top of severance pay.
In the January-March period this year, Hyundai Heavy received $1.74 billion worth of ship orders, plunging 42 percent from a year earlier, with new orders drying up amid a prolonged economic slowdown.