Ssangyong Motor announced it would cut the number of senior management positions by almost 40% as part of a range of cost cutting measures at the bankrupt SUV maker.
It entered court receivership earlier this month after its parent company failed to attract a buyer for the loss making business.
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Mahindra & Mahindra had held talks for more than a year with US importer HAAH Automotive Holdings to sell all or most of its 75% stake in Ssangyong but a letter of intent to acquire the company failed to materialise.
Ssangyong said it would cut the number of executive posts from 26 to 16 and also implement salary cuts immediately for the remainder. The company had previously reduced this number from 35 at the end of 2019 and cut salaries of the remaining executives by 20% helping it to save a reported KRW120bn (US$108m) per year.
Ssangyong, which makes mainly SUVs, filed for bankruptcy on 21 December 2020 after it failed to meet its debt obligations with creditors refusing to reschedule repayment deadlines.
The company was given a three-month grace period from its debt obligations by the Seoul Bankruptcy Court while M&M negotiated its potential sale.
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