Hanjin Commences Layoffs
Hanjin Shipping Co. has notified 560 shipping crew that their service with the company ends on Dec. 10, reports the Pulse. The rest of 2,000 on the company payroll are expected to get dismissal notice within next month.
The troubled shipping giant has started laying off its employees as part of and ahead of measures to find a buyer for its Asia-US assets.
Korea Ship Owners’ Association and Korea Maritime Institute estimate as many as 10,000 in related port, ship maintenance, and insurance industry would lose job when Hanjin Shipping goes under. Of them 23,000 jobs would be lost in the port city of Busan.
Hanjin Shipping that had been the world’s seventh-largest container carrier and South Korea’s largest shipping company before filing for court receivership in August would be selling off its entire fleet of 98 liners within the month to pay off debt.
The court has requested a report on the shipper's assets and finances by Nov. 25 and is expected to decide as early as this month whether the company is to be liquidated or rehabilitated.