South Korean shipbuilder STX Offshore & Shipbuilding is taking drastic measures to make sure its survival past mid-2016 as newbuild orders plunge and the cash-strapped firm struggles to ship these orders nonetheless remaining, in accordance with studies.

STX chief govt Lee Byung-mo sounded the alarm in an e-mail to workers this week obtained by the Korean Herald, touting a drastic restructuring as “the only way for survival.” Without one, sustaining enterprise as ordinary “will lead to the firm’s collapse within the first half of 2016,” he stated within the e-mail.

New particulars rising Wednesday say that the plan may embrace the elimination of 800 jobs, or about 30 % of its workforce, and slicing salaries of these remaining by 10 %, the Herald reported, citing sources.

The paper stated that the agency’s most important creditor, Korea Development Bank, has been pushing the shipbuilder to scale back its mounted bills by 50 % in an effort to keep away from court docket receivership, a kind of company chapter.

The plan may additionally embrace focussing on tankers and shying away from loss-making offshore and specialised vessels that after helped the shipbuilder to the title of the world’s fourth largest.

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