The world’s second largest shipbuilder has announced it will be cutting 24% of jobs, amounting to 3,000 people, in the face of the current industry crisis and its debts, according to Bloomberg.
Korea Development Bank, a creditor of Daewoo and former creditor of the bankrupt Hanjin Shipping, had promised with Export-Import Bank of Korea to put up US$3.7 billion in equity for the company.
In June, 2016, Daewoo Shipbuilding and Marine Engineering Co announced it had arranged to cut 30% of its capacity and workforce, having sold two out of five floating docks.
Port Technology reported on September 20, 2016, that Daewoo had won a US$120 million deal to design and supply material for two ships, expected to be received by the end of 2019; this deal came in despite having reported losses of $379 million, and having large amounts of debt.
In a bid to tackle its mounting debt, Daewoo reduced its workforce and lowered ages in July, 2016; this led to massive union run strikes at its facilities, massively disrupting the company’s operations.