April 8, 2009

Ssangyong cuts 37 percent of its workforce

Court-protected Ssangyong Motor Co. in South Korea said it would cut 2,646 jobs -- 37 percent of its workforce -- in an effort to save the company.

Lee Yoo-il, one of the company's court-appointed bankruptcy managers, said pains and rifts will be unavoidable as the automaker tries to convince stake holders, no future will be guaranteed without a radical self-rescue effort.

Yonhap News said Wednesday that the company's labor union vowed it would put up a do or die battle to protect jobs.

The company, with the capacity to produce 200,000 cars a year, lost $530 million in 2008 as sales fell 20 percent from 2007.

In the first quarter of 2009, sales plummeted 76 percent to 6,471 vehicles. With the restructuring, Ssangyong said it would produce 55,700 cars this year, a 58 percent decline from 2008.