Pantech to cut 500 jobs after $150 million loss

Mobile phone maker will restructure considerably

Pantech, a South Korea mobile phone manufacturer, has embarked on restructuring efforts after suffering from a 150 billion ($US155 million) loss last year. On Friday, it announced it would consolidate its 41 divisions into 29, while cutting its workforce from the current 3,500 to 3,000 through an early retirement program.

The move comes after Pantech already held two sets of layoffs, the most recent cutting the workforce from 4,000 to 3,500. Such restructuring efforts are designed to shore up its business, which managed to turn a profit in the first quarter of this year but dipped into the red again in the second quarter. The outlook for the third quarter is no less pessimistic.

The restructuring move is taking place in three areas: workforce, cost, and business structure. Pantech said that it is trying to remove overlapping workforce from a series of previous acquisitions. "With intensifying competition in the global market, we posted a loss in the second quarter. As the third quarter is expected to be less than market consensus, we have no choice but to push for measures intended for survival," a Pantech official said.