POSCO has streamlined the company’s organizations to cope with continued unfavorable market conditions and a management crisis, company officials said Thursday.
The country’s largest steelmaker has removed 88 teams from its steel mills in Pohang, North Gyeongsang Province, and Gwangyang, South Jeolla Province. The restructured teams include organizations developing raw material strategy and stainless materials.
POSCO explained these departments have grown over the years to overlap with already existing teams at the headquarters and steel mills.
“Those whose teams were disbanded this time were sent to our reengineering team to help with the restructuring process,” the company said in a statement.
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| POSCO building. Yonhap |
“Some were offered education programs such as a six-month MBA course and language classes, in order to improve their work capacity,” it added.
Teams that are directly related to field operations, like safety management teams, were transferred to steel mills, while project assistant teams were consolidated for cost efficiency.
Meanwhile, the operation team and R&D center was exempt from the restructuring as they deeply affect the firm’s competitiveness in the steel industry, according to POSCO.
In an email sent to employees last week, POSCO chairman Kwon Oh-joon wrote, “When in crisis, the key (to survive) can always be found in the field,” placing emphasis on the role of the workforce at steel mills.
“I will try to become a field-oriented CEO,” he said, signaling steel mill-focused restructuring moves.
POSCO announced its second-quarter earnings result at an investor relations’ session on July 15, in an unusual move that capped the company’s desperate efforts to assuage investor concern over falling sales and an alleged graft scandal.
The firm’s operating profit fell 18.2 percent on-year to 686 billion won ($588.8 million), while sales dropped 9.1 percent to 15.18 trillion won.
By Suk Gee-hyun (monicasuk@heraldcorp.com)
