Renault Samsung Motors plans to execute downsizing along with output reduction as sales continue to plunge.
The company has recently disclosed a plan to reduce the unit per hour (UPH) of its Busan plant from 60 to 45 beginning in October at a briefing session for trade union officials. The management also told the labor union that this output adjustment could lead to a workforce reduction.
"The specific size and method of workforce reduction has not been determined yet," a Renault Samsung official said. Industry experts predict that Renault Samsung will lay off about 400 people.
In response, the labor union has reportedly decided to begin a struggle to protest against the planned downsizing.
Renault Samsung has been suffering from sluggish sales due to recession and lengthy strikes. By July of this year, its car sales totaled 101,718 units, down 29.6 percent from the same period of last year. In particular, its exports in 2019 hit 56,904 units, down 40.8 percent on year.