Ssangyong has confirmed earlier reports of big job cuts and has said it will cut 2,646 jobs, or about 37% of its total workforce, as part of its new survival plan.
Ssangyong, under bankruptcy protection and 51-percent owned by SAIC, described the job-cut plan as a “quintessential condition” for the company’s survival, Yonhap reported.
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“The self-rescue effort, including job cuts, is a quintessential condition for the company’s resuscitation,” said Lee Yoo-il, one of two court-appointed managers at Ssangyong.
Yonhap noted that Ssangyong is expected to meet strong resistance from Ssangyong’s 7,100 union employees. Earlier in the day, the Ssangyong union said it will declare a “do-or-die battle” if the company announces the job-cut plan.
Next month a bankruptcy judge at the Seoul Central District Court will meet creditors of Ssangyong and its debt holders to decide on the viability of the company.
