Financially troubled STX Offshore & Shipbuilding (STX O&S) will slash 800 staff, roughly 30% of its approximate 2,600 workforce, as well as cutting all salaries by 10%.
Once the world’s fourth largest shipbuilder, STX O&S finds itself on the brink of court receivership. The firm’s ceo Lee Byung-mo warned in a leaked email to staff last week: “Maintaining the current management system will lead to the firm’s collapse within the first half of 2016.”
STX O&S suffered an operating loss of KRW26.5bn ($22.7m) in the first half of this year. Lead creditor Korea Development Bank has told the yard it must come up with a plan to reduce 50% of fixed expenses or else head into court receivership.
STX O&S will focus on series production of product tankers in the future, if it survives.