Restructuring efforts at South Korea-based shipbuilding giant Hyundai Heavy Industries (HHI) are to bring about a new wave of job cuts as the company battles to cut costs and boost its earnings.
The shipbuilder’s self-help measures are to include slashing of 10 percent of its workforce, up to 3,000 jobs, Yonhap reports citing industry sources, along with disposing off non-core assets, nearly 100 of its 390 business divisions.
Jobs being targeted are said to be both administrative and production positions.
Based on the report, a detailed plan on the cuts is expected to be revealed by the company executives next week, whereas the implementation of the restructuring measures is scheduled to start next month.
The latest round of cost-cutting measures follows a 42.2 percent fall in new orders at the company for the first quarter of 2016 year-on-year.
The company’s shipbuilding business took a big blow with 63.2% lower orderbook reaching USD 234 million. HHI’s offshore and engineering business recorded USD 149 million worth of new orders, a 74.8 % drop year-on-year.
The losing streak resumes from last year when HHI was faced with numerous delays in construction of offshore facilities and ships as the industry sector struggled with overcapacity and cost cutting measures.