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

Lee Hong Liang, Asia Correspondent

June 16, 2016

1 Min Read
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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.

About the Author

Lee Hong Liang

Asia Correspondent

Singapore-based Lee Hong Liang provides a significant boost to daily coverage of the Asian shipping markets, as well as bringing with him an in-depth specialist knowledge of the bunkering markets.

Throughout Hong Liang’s 14-year career as a maritime journalist, he has reported ‘live’ news from conferences, conducted one-on-one interviews with top officials, and had the ability to write hard news and featured stories.

 

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