Samsung Heavy reduces no. of executives

By Jhoo Dong-chan

Samsung Heavy Industries (SHI) has reduced the number of its executives as it prepares for a possible business slowdown this year.

This comes as it is seeking to raise 1.5 trillion won via new shares from its shareholders including Samsung Electronics.

According to SHI, Wednesday, it carried out the reshuffle at the end of last year to reduce the number of its executives by 30 percent to 50 from 72. The shipbuilder, which had 89 departments and subgroups under its body, has also downsized into 67 departments.

“Reorganization of the company will help us keep our continuity,” SHI CEO Nam Jun-wu said in his New Year’s address.

Nam added the company should enhance its competitiveness while successfully issuing new stock to overcome the crisis.

SHI, one of the nation’s top three shipyards, failed to receive any orders for nearly a year since October, 2016.

Last month, the shipbuilder said it suffered an operating loss of 490 billion won the year before and 240 billion won this past year amid declining demand for its new vessels and offshore energy projects.

Industry observers say it was “unprecedented” for a shipbuilder to preemptively forecast an operating loss, and the former SHI CEO resigned last month to take responsibility for the firm’s losses.