Korean auto components maker Mando has reportedly decided to downsize its workforce on declining Chinese business.
The Korea Times reported that the move reflects lower demand from China, which accounts for around a fifth of the company’s sales. Mando customer Hyundai is among the list of OEMs experiencing much lower sales in China this year.
The report added according to Mando’s earnings report, it logged 51.78 billion won ($42.8 million) in operating profit for the second quarter, down 21.9% from a year earlier. In a half-year comparison, the company’s operating profit has declined to 83.87 billion won from 109.65 billion won a year earlier, the report said.
Mando CEO Chung Mong-won has also announced a plan to restructure the company in the face of a ‘stern crisis’.
The report added that in China the company has already cut the payroll by 15% in the first quarter of this year. Mando China Holdings accounts for around 20% of Mando’s overall revenue, making it the second largest market for Mando after South Korea. Hyundai Motor Group accounts for around 60% of the company’s business.