Daewoo Slashes Some Senior Execs
Oct. 25, 2000
SEOUL (AP) _ South Korea's troubled Daewoo Motor Co. said Wednesday that it has implemented a 30 percent cut in senior executives at home and abroad as a part of its restructuring efforts.
The company also said Wednesday it failed again to pay its employees salaries this month due to a shortage of funds.
The company closed down 17 bureaus led by senior executives, and reduced the number of senior executives from 135 to 95.
The company cut 48 senior executives in August 1999, and 45 more in January this year.
Daewoo said it plans to announce additional staff cuts and business restructuring measures later this month.
The number of Daewoo Motor employees who quit their jobs totaled 95 in September, up from 48 in August. The company has approximately 19,000 assembly-line and office workers.
Daewoo hasn't paid its office workers for September and October, and it hasn't paid its assembly line workers for October.
The government and creditors of Daewoo Motor are in talks with General Motors Corp. in an attempt to sell the automaker following its aborted sale to Ford Motor Co. in September.