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SHI plans 1,500 layoffs, seeks 30% return of executive salaries

SHI plans 1,500 layoffs, seeks 30% return of executive salaries
South Korea’s Samsung Heavy Industries (SHI) has voluntarily planned to significantly cut workforce and have executives return part of their salaries, the local media reported.

According to SHI’s detailed self-restructuring plan, the shipbuilder will slash its workforce by 1,500 through an early retirement scheme this year, and have its executives return around 30% of their salaries starting from July, Yonhap reported.

SHI also planned to suspend part of its production facilities including floating docks in gradual phases in order to tide through the dearth of new orders.

The self-restructuring program involving cutting some KRW1.5trn in costs has been approved by the creditors, it was reported.

Compatriot Korean yards including Hyundai Heavy Industries (HHI) and Daewoo Shipbuilding & Marine Engineering are also troubled by debts and going through restructuring.