SsangYong slashes workers, output

SsangYong Motor Co. has announced that it will lay off around 2,646 workers, 36% of its workforce, in South Korea in a bid to reduce its labor force. The reduction, the company said, is part of its restructuring program to cope with the global economic downturn. SsangYong also plans to cut some employees’ welfare benefits and will also sell property assets in an attempt to save between 100 billion won (US$75 million) and 200 billion won (US$150 million). The company is aiming to sell 55,650 vehicles during 2009, down 40% year on year from the 92,665 units sold in 2008. SsangYong forecasts that it will post sales revenues of 1.85 trillion won (US$1.37 billion) in 2009, down from 2.495 trillion won (US$1.87 billion) in 2008, although it expects to reduce its operating losses from 227.4 billion won (US$170.36 million) to 142.5 billion won (US$106.57 million) during the same period. (April 8, 2009)