DSME reducing number of departments 22 percent

Daewoo Shipbuilding and Marine Engineering is downsizing its business departments more than 20 percent in an effort to speed up corporate normalization.

The troubled shipbuilder said it will slice its number of departments 22 percent from 204 to 159.

The cut is expected to involve labor reductions as well although the exact number and timing has not been decided.

DSME already received resignations from about 200 employees serving as department heads or in higher positions at the end of October, though their resignations have not been accepted by the company yet. Apart from downsizing, the restructuring also intends to shift the company’s organizational structure from functional to divisional. Employees will be grouped according to their responsible products such as vessels and offshore plants, rather than functions such as design, sales and accounting.