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Krakatau Steel denies it will carry out layoffs
The rumor emerged following a report that the company was to carry out restructuring as part of its efforts to make the company profitable.
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Various products of state-owned steel producer PT Krakatau Steel are displayed during Indonesia Infrastructure Week 2017 in Jakarta. (tribunnews.com/Choirul Arifin)
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tate-owned steel producer PT Krakatau Steel has denied rumors that the company will layoff more than 2,000 people in an effort to improve its financial performance.
“The rumor is false,” Krakatau Steel president director Silmy Karim said in a statement. “There are many ways for a company to restructure its organization and firing employees is not always the way.”
The rumor emerged following a report that the company was to carry out restructuring as part of its efforts to make the company profitable.
He said one of the moves would be streamlining, which led people to believe that the company would layoff thousands of its employees.
Instead of laying off employees, he explained, the company would transfer the employees to its subsidiaries to make the company more efficient and productive. He further said the company’s subsidiaries needed more employees to expand.
He said such a move was necessary to make business sustainable and to make profit.
Up to the first quarter of this year, Krakatau Steel’s losses increased by more than 1,000 percent year-on-year (yoy) to US$64 million, while its revenue slumped 13.82 percent yoy to US$418.98 million. (bbn)
