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Yangzijiang to cut 2,000 more workers

Yangzijiang to cut 2,000 more workers
China’s privately-owned Yangzijiang Shipbuilding is planning further job cuts of 2,000 in the face of adversity, adding on to the 4,000 job cuts already executed this year, reports said.

The additional cut in workforce, according to a Reuters report, is part of the shipbuilder’s overall efforts to slash costs as earnings have been hit by slowing new shipbuilding orders, order cancellations and rescheduling amid the weak shipping market.

Yangzijiang, currently the largest privately-run shipbuilding enterprise in China, announced earlier this month that it has axed around 4,000 employees over the course of this year, representing 20% of its approximate 20,000 workforce.

In addition, 500 workers were asked to accept a reduction in their salaries and go on leave.

The Singapore-listed company, led by its executive chairman Ren Yuanlin, has managed to stay profitable with a first half profit of RMB863.38m ($130.05m), though down sharply by 50% from year-ago level.

The severe downturn in the shipbuilding industry, particularly in China, has triggered a wave of bankruptcy among shipyards over the last few years. In 2015, more than 20 Chinese shipbuilding enterprises of large to medium sizes have declared bankrupt.