Doosan Heavy Industries to Begin Partial Layoff of Around 400 Idle Workers Starting from the 21st...

The Number of Second Voluntary Retirement Applicants Closed on the 15th This Month is Around 100

On the 27th, the Doosan Tower building in Dongdaemun-gu, Seoul, is visible as the government decided to inject 1.6 trillion won into Doosan Heavy Industries, which is experiencing financial difficulties, through the Korea Development Bank and the Export-Import Bank of Korea. Photo by Kang Jin-hyung aymsdream@

[Asia Economy Reporter Ki-min Lee] Doosan Heavy Industries & Construction, which received the second round of voluntary retirement applications this year, will begin a temporary shutdown for idle personnel starting on the 21st.

On the 18th, Doosan Heavy Industries & Construction announced, "As part of a self-rescue plan including financial structure improvement, we will implement a temporary shutdown for some idle personnel starting from the 21st." The company clarified, "This temporary shutdown does not mean a halt in operations at the business sites or factories."

The number of personnel subject to this temporary shutdown is known to be around 400. Those affected will be on leave for seven months starting from the 21st and will receive 70% of their average wages. Doosan Heavy Industries & Construction reportedly selected the personnel for the shutdown across all departments, regardless of technical or office positions.

Facing liquidity crises due to sluggish orders, excessive debt, and multiple debts, Doosan Heavy Industries & Construction estimates that it must reduce more than 1,200 employees through voluntary retirement this year to cut approximately 150 billion KRW in annual fixed costs such as labor expenses.

Therefore, from February to early March this year, the company conducted voluntary retirement targeting about 2,600 employees born in 1975 or earlier (aged 45 or older), resulting in about 650 employees leaving the company.

Since the number of voluntary retirement applicants fell short of expectations, Doosan Heavy Industries & Construction held a second round of voluntary retirement applications from the 11th to the 15th of this month. According to the company, about 100 employees applied for the second round.

Despite two rounds of voluntary retirement, the low number of applicants led Doosan Heavy Industries & Construction to immediately resort to the temporary shutdown measure.

Meanwhile, Doosan Group submitted a self-rescue plan worth 3 trillion KRW to creditors at the end of last month to normalize the management of Doosan Heavy Industries & Construction, which received a large-scale emergency fund injection from state-run banks. In addition to workforce restructuring, the plan includes capital increases, asset sales, and affiliate divestitures.

This content was produced with the assistance of AI translation services.