Struggling Hyundai Heavy lays off quite a few execs
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Hyundai Heavy Industries, the world’s largest shipbuilder by sales, said Sunday it has cut a third of its executives in its offshore and engineering division as new orders have dried up.
The move came a month before the shipbuilder is due to suspend work at its offshore facilities shipyard. The suspension scheduled for August is the first in 35 years.
Hyundai Heavy has lost out to Chinese and Singaporean rivals in offshore projects in recent years due to its higher costs. The labor costs of Chinese and Singaporean shipbuilders are roughly a third of Hyundai Heavy’s.
Questions & Answers
Q.Which division within Hyundai Heavy Industries has seen executive layoffs?
Which division within Hyundai Heavy Industries has seen executive layoffs?
Hyundai Heavy Industries has cut a third of its executives in its offshore and engineering division. This action follows a period where new orders for this specific division have dried up.
Q.When is Hyundai Heavy Industries planning to suspend work at its offshore facilities shipyard?
When is Hyundai Heavy Industries planning to suspend work at its offshore facilities shipyard?
The shipbuilder is scheduled to suspend work at its offshore facilities shipyard in August. This will be the first such suspension in 35 years for the company.
Q.What is the primary reason Hyundai Heavy Industries has lost out on offshore projects?
What is the primary reason Hyundai Heavy Industries has lost out on offshore projects?
Hyundai Heavy Industries has lost out to Chinese and Singaporean rivals due to its higher costs. The article specifically notes that labour costs for these competitors are roughly a third of Hyundai Heavy's.