Daewoo Shipbuilding and Marine Engineering CEO Jung Sung-Leep announced that the company plans to cut 12,000 positions as a part of restructuring efforts.
Speed-Read:
- The firm posted massive losses of $4 billion for FY2015.
- The personnel reductions would be gradual and would start with employees seconded by suppliers.
- Last year, nearly 3,000 were laid off including 30 percent of its administrative positions at the managerial level or above.
- At present the firm employs 42,000; as recently as 2014 its payroll stood at 55,000, including contractors.
In a press conference at the firm’s headquarters in Seoul, CEO Jung Sung-Leep said:
“We are planning to reduce the number of employees to a similar level to 2009 and 2010. This is the optimum number for the company to operate more efficiently and cost-effectively.”
He also suggested that the firm’s remaining staff need to open up and collaborate, rather than defending their positions and digging in.
“Only after employees are motivated to work together toward our common goal can we get the company back on track. A recession in the offshore industry was the biggest factor behind the loss . . . last year. But we expect to deliver nine offshore [rigs] this year, although there may be some obstacles in the process. Additional loss or uncertainty in other maritime and wind power projects has almost cleared.”
Source: The Korea Times
