ID :
54429
Wed, 04/08/2009 - 13:30
Auther :
Shortlink :
https://www.oananews.org//node/54429
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Ssangyong Motor to announce massive layoffs in bid for survival
SEOUL, April 8 (Yonhap) -- Ssangyong Motor Co., South Korea's smallest automaker,
was set to announce large-scale layoffs Wednesday as part of a restructuring
program for the company now under bankruptcy protection, officials said.
An official at Ssangyong's public relations team declined to confirm the size of
job cuts, but said the company will make an announcement as of 2:00 p.m. on the
day.
Ssangyong, which entered court receivership in February due to slumping sales and
dwindling cash reserves, will have to cut as many as 2,900 jobs, or about 40
percent of its workforce, according to a source close to the matter who spoke on
condition of anonymity.
Samjong KPMG Inc., an auditor for Ssangyong, notified the troubled automaker of
the job-cut plan, the source added.
"The plan calls for Ssangyong to cut 2,200-2,900 employees, or 30-40 percent of
total workforce," the source said.
If made, the cuts would be the first mass layoffs by a South Korean company since
the onset of the global economic crisis in September last year. The move is
expected to meet strong resistance from about 7,100 workers at Ssangyong.
"Ssangyong Motor's 7,100 workers will declare a do-or-die battle if the workforce
restructuring plan is announced," the Ssangyong union said in a statement.
Ssangyong was abandoned by Shanghai Automotive Industry Corp. (SAIC) in January
after the Chinese parent refused to make any major effort to save its affiliate.
If the restructuring program is deemed unviable, creditors of Ssangyong will
liquidate the automaker.
Ssangyong, which has an annual production capacity of 200,000 vehicles, posted a
net loss of 709.7 billion won (US$530.3 million) in 2008 on sales of 2.5 trillion
won, down 20 percent from a year earlier.
In the first three months of this year, Ssangyong's vehicle sales dived 76
percent to 6,471 units.
With the bankruptcy protection, SAIC, which still owns a 51-percent stake in
Ssangyong, relinquished its control of the South Korean carmaker.
(END)
was set to announce large-scale layoffs Wednesday as part of a restructuring
program for the company now under bankruptcy protection, officials said.
An official at Ssangyong's public relations team declined to confirm the size of
job cuts, but said the company will make an announcement as of 2:00 p.m. on the
day.
Ssangyong, which entered court receivership in February due to slumping sales and
dwindling cash reserves, will have to cut as many as 2,900 jobs, or about 40
percent of its workforce, according to a source close to the matter who spoke on
condition of anonymity.
Samjong KPMG Inc., an auditor for Ssangyong, notified the troubled automaker of
the job-cut plan, the source added.
"The plan calls for Ssangyong to cut 2,200-2,900 employees, or 30-40 percent of
total workforce," the source said.
If made, the cuts would be the first mass layoffs by a South Korean company since
the onset of the global economic crisis in September last year. The move is
expected to meet strong resistance from about 7,100 workers at Ssangyong.
"Ssangyong Motor's 7,100 workers will declare a do-or-die battle if the workforce
restructuring plan is announced," the Ssangyong union said in a statement.
Ssangyong was abandoned by Shanghai Automotive Industry Corp. (SAIC) in January
after the Chinese parent refused to make any major effort to save its affiliate.
If the restructuring program is deemed unviable, creditors of Ssangyong will
liquidate the automaker.
Ssangyong, which has an annual production capacity of 200,000 vehicles, posted a
net loss of 709.7 billion won (US$530.3 million) in 2008 on sales of 2.5 trillion
won, down 20 percent from a year earlier.
In the first three months of this year, Ssangyong's vehicle sales dived 76
percent to 6,471 units.
With the bankruptcy protection, SAIC, which still owns a 51-percent stake in
Ssangyong, relinquished its control of the South Korean carmaker.
(END)
