Renault Samsung to reduce the number of employees in South Korea

Article by Christian A., on August 13, 2012

A voluntary redundancy program will be launched by the South Korean unit of Renault amid a sales slump worldwide. Renault Samsung did not say just how much it is targeting for its reductions in the work force. But according to a media report, hundreds of jobs may be lost. The automaker said that 4,500 workers qualify for the program.

Around 1,000 design and research staff members are excluded. Renault Samsung’s decision comes after the South Korean unit of General Motors Co. had announced the voluntary redundancies.

In South Korea, this is the preferred method used by companies to reduce personnel costs. Layoffs are not favored in this country. Demand is lower because of the worldwide economic slowdown, significantly affecting the automakers in Asia's fourth biggest-economy.

There have been reports that about 130 managers at GM Korea applied for the scheme. When asked how many employees have applied, a GM Korea spokeswoman declined to provide a number.

A Renault Samsung spokeswoman said that conditions continue to be hard and so it created revival measures such as voluntary retirements to cut costs. This would be the first voluntary retirement program for Renault Samsung since it started in 2000.

Deadline for applications is on Sept. 7. In addition, Renault Samsung denied rumors that there will be further job restructuring if the applications don’t meet targets. Renault Samsung is forced to cut production at its domestic plant after having the worst sales performance this year compared to fellow South Korean carmakers.

It posted a combined drop of 34% in its home and overseas markets in the first seven months of 2012 compared to the previous year. The company said last month that its Busan factory is targeting to produce around 180,000 vehicles this year from a capaicyt of 300,000 units.

If you liked the article, share on:

Comments

Recommended

Earlier in November at the 2017 SEMA Show in Vegas is when Hennessey unwrapped the Venom F5 to all of us. But it was actually first introduced as a concept...
by - November 22, 2017
Mercedes-Benz just made an announcement that the 2018 E Class Cabriolet has finally landed in the United States. If you had not known, the E Class will be positioned in...
by - November 22, 2017
After a somewhat successful fray into the automotive market in China, the resurrected German automobile brand Borgward is finally heading to Europe, bringing along with it the Borgward BX7 sports...
by - November 22, 2017
Automotive industry veteran Bob Lutz has once again spoken out against Tesla. Known as one of Tesla Motors’ greatest skeptics, Lutz had stated two years ago that the Silicon Valley...
by - November 22, 2017
Dubai is one of the few countries where expensive cars are the norm, many of which are specially modified as well. And this just in: Bentley has debuted the new...
by - November 21, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries