GS Engineering cuts Mumbai staff by one third

Vol 21, PW 1 (05 Oct 17) People & Policy

This week, South Korean EPC contractor GS Engineering & Construction will have slashed its Mumbai office head count by nearly a third following a similar downsizing exercise at its Delhi office last September.

By October 6 staff strength at the GS Mumbai office will drop from approximately 300 employees to just 200 under a Voluntary Separation Scheme 2017. GS Mumbai managing director Mong Ryong Lee sent a three-page notice on September 1 to staff informing them about the scheme, valid for 22 days until September 22 aimed at "confirmed regular employees" who have been rated as 'B' (average) in the performance appraisal held between March and April 2017 in the following categories: principal engineer/principal officer, senior engineer/senior officer, engineer/officer, assistant engineer/assistant officer, design supervisor and designer.

Applications were reviewed between September 25 and 29 and cannot be withdrawn by employees once accepted by management. Lee's notice adds the redundancy scheme is "purely at the discretion of eligible employees without any compulsion." Lee says the move is necessary because the oil and gas industry "is facing a financial crisis with steep downward trend in crude oil prices impacting business around the world." Projects "under progress have been either put on hold or cancelled," he adds.

GS Mumbai is mainly a back-end engineering centre for projects in the Middle East, Iran, Central Asia, South East Asia and Venezuela.

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