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Daewoo Shipbuilding seeks to cut 1,000 workers through early retirement scheme

All News 19:05 October 07, 2016

SEOUL, Oct. 7 (Yonhap) -- Daewoo Shipbuilding & Marine Engineering Co., a major shipbuilder here, said Friday that it would seek to cut its workforce by some 1,000 via an early retirement program amid a prolonged industrywide slump.

The shipbuilder will receive applications from its workers through Oct. 21, company officials said.

In October of last year, some 300 workers left Daewoo Shipbuilding through an early retirement scheme. Daewoo Shipbuilding said earlier it would cut its workforce to some 10,000 by 2020 through restructuring.

South Korean shipbuilders have been under severe financial strain since the 2008 global economic crisis which sent new orders tumbling amid a glut of vessels and tougher competition from Chinese rivals.

The country's top three shipyards -- Hyundai Heavy Industries, Samsung Heavy Industries Co. and Daewoo Shipbuilding & Marine Engineering Co. -- suffered a combined operating loss of 8.5 trillion won last year. The loss was due largely to increased costs stemming from a delay in the construction of offshore facilities and an industrywide slump, with Daewoo Shipbuilding alone posting a 5.5 trillion won loss.

The shipbuilders have recently drawn up sweeping self-rescue programs worth 10.35 trillion won in desperate bids to overcome the protracted slump and mounting losses.


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