Top Shipbuilders Heavy on Job Cuts Through 2016

Published at 08:37AM - 26/10/16

The shipbuilding industry has been taking a hard hit across Asia, where the world’s top ship and rig builders are based.

Throughout this year, more than 20,000 jobs are estimated to have been eliminated, with plans for the trend to continue.

The highest number of cuts comes from the top three builders based in South Korea – Hyundai Heavy Industries, Daewoo Shipbuilding & Marine Engineering and Samsung Heavy Industries.

Top Shipbuilders Heavy on Job Cuts Through 2016

According to information by the Korea Labour Institute reported by media sources, more cuts could come before the end of this year, with an estimated 40,000 more jobs that could be lost in the period.

Delays in deliveries and a weaker demand are some of the causes that have reportedly led these top three shipyards to plunge in the red on their last quarterly reports.

In Singapore, the scenario is similar, with shipbuilders and oil rig makers like Keppel and Sembcorp Marine eliminating thousands of jobs as a result of a downfall in demand.

Just last week, Keppel announced it slashed 8,000 jobs from its offshore and marine segment, while Sembcorp is reportedly following the same path, although it has not disclosed any further information on this.

Asian Rig Makers Slash their Headcounts

In fact, this is the reality across the whole sector, where companies have reportedly cut over 350,000 jobs since the oil price crisis started, media sources reported.

More specifically, Hyundai Heavy Industries (HHI) had to reduce approximately 1,500 positions during the first half of 2016, while Samsung Heavy Industries (SSI) had to follow with the same number of cuts.

According to the latter, the implementation of a restructuring plan to raise much-needed funds could bring a further reduction in its workforce of 40% by 2018.

Meanwhile, Daewoo Shipbuilding and Marine Engineering (DSME) is no exception as it is looking to cut its workforce by approximately 1,000 workers before the end of this year and a further 2,000 later on.