After posting a $4.3 billion loss for 2015, Daewoo Shipbuilding & Marine Engineering Co., which just two years ago employed 55,000 workers, plans to further reduce its workforce from 42,000 to 30,000.
Daewoo Shipbuilding & Marine Engineering Co. (DSME) is set to begin another wave of layoffs after reporting a massive loss in 2015, according to reports from Korean media.
According to a report from South Korea’s Yonhap news agency, DSME posted a record 5.1 trillion won ($4.3 billion) loss last year after a meager 33 billion won ($27 million) profit in 2014. The company cited order cancellations and delays in construction of offshore facilities as causes.
Korea Times reported the shipyard, which previously cut its workforce from 55,000 in 2014 to 42,000 today, now plans to further reduce its workforce to 30,000.
Jung Sung-leep, the chief executive officer of DSME said he is working to improve employee morale.
DSME’s March investor report says as of Feb. 29 it had a backlog of 105 commercial vessels (21 tankers, 21 containerships, 51 liquified natural gas carriers and 12 liquefied petroleum gas carriers) valued at $17.95 billion, 20 offshore plants valued at $19.32 billion, and 20 “special ships” with a value of $4.89 billion.
DSME to layoff another 12,000 workers
