Hyundai Heavy Industries plans to cut 5.4% of workforce

Hyundai Heavy Industries (HHI), the world’s largest shipbuilder, plans to launch a voluntary retirement program early this year, industry sources said Thursday.

The measure comes after the global shipbuilding market shrank sharply last year.

According to international market researcher Clarkson Research Service, orders won by South Korean shipbuilders plunged 36.4 percent in 2014 from the previous year. Shipbuilding orders issued worldwide dropped 34.7 percent on-year in 2014, Clarkson said, amid growing concerns about the global economy and falling international oil prices.

Employees, who were born during the 1960s or older, are eligible to apply for the retirement program, the sources said. Those who apply for the program will be given up to 40 months of salary in addition to severance money, they said.

Under the early retirement program, part of its restructuring plan, the HHI seeks to lay off 1,500 workers, or 5.4 percent of its workforce, they said.

Park Sae-jin swatchsjp@ajunews.com