Financially troubled South Korean shipbuilder Daewoo Shipbuilding & Marine Engineering (DSME) plans to eliminate 3,000 jobs before year-end as part of its restructuring plan.
DSME expects about 1,000 employees to participate in a voluntary retirement program it has made available through to October 21. It is also planning to transfer another 2,000 workers into an unspecified new company.
DSME ceo Jung Sung-leep said in March it is planning to cut its workforce by 12,000 by 2019, a 40% reduction.
Last month the yard, which is in court receivership, was given a year by the Korea Exchange to get its finances in order at which time it could see its share suspension lifted.
Ominously, consulting firm McKinsey & Co has just issued a report doubting whether Daewoo Shipbuilding and Marine Engineering can survive past 2020.
