Hyundai Heavy Industries is expected to cut its workforce again by around 10% as it restructures after suffering heavy losses incurred by low newbuilding activity.
The shipyard currently employs 27,000 people at its dockyards, but up to 3,000 could be subject to the workforce reduction plan, according to reports from South Korea’s Pulse News.
HHI is also reportedly planning the closure of nearly 100 of its 388 business divisions, equivalent to around 20% percent of the group. Sources told the news website the self-rescue plan could begin to be effected as soon as next week.
The shipyard’s vessel and platform design team would be relocated from Seoul to HHI’s corporate headquarters in Ulsan as part of the plan, sources said.
HHI offered 1,500 workers a voluntary retirement deal in January 2015. The group incurred losses of KRW 1.5tr ($1.3bn) during its fiscal year 2015, mainly due to delays in offshore vessel projects.
