By Jhoo Dong-chan
Samsung Heavy Industries (SHI) will fire 1,500 workers and cut salaries of executives by 30 percent under a restructuring plan announced Wednesday.
SHI CEO Park Dae-young said 30 to 40 percent of the workforce will be laid off by the end of 2018. The company’s executives will also return some 30 percent of their salaries, starting July, to help stabilize the company. Park said he will return 100 percent of his salary.
A voluntary retirement campaign this year will cut 1,500 jobs.
The shipbuilder will also gradually suspend parts of its production facilities to reduce costs.
The nation’s second-largest shipyard submitted its restructuring plan to the state-run Korea Development Bank (KDB), under which it will sell its Pangyo R&D Center and Samsung Hotel Geoje, as well as stockholdings, to raise about 1.5 trillion won.
The KDB approved the plan earlier this month.
SHI has failed to clinch any shipbuilding contracts this year.