POSCO has instituted a large-scale organizational restructuring in accordance with the recently announced high-intensity reorganization plan.
The steel maker said on July 29 that it has carried out a downsizing of its organizations with attendant reshuffling of personnel in its headquarters and steel mill supporting units. With the latest reform, the company has closed a total of 88 units and teams, including the raw material strategy group and stainless raw material development project.
A POSCO official said, "All organizations were subject to the reform except ones directly related to steel production and steel R&D." Meanwhile, the value management unit was reduced to a minimal size while restructuring into domestic and international business areas.
As for the steel business division, its carbon steel and stainless steel business units were consolidated while its customer on-site service units were streamlined. Several innovation and project support functions were also consolidated and all functional departments directly related to steel production were moved to the steel production division.
In the area of raw materials, organizations related to ones no longer important due to change of strategy were scaled back while those responsible for purchasing and IT were also reduced their size. Earlier on June 15, POSCO chairman Kwon Oh-joon said that his company would cut back the number of its affiliate companies by a half from now within two years' time. According to his plan, current 48 domestic affiliates will be cut to 24 while overseas units will be reduced by 30 percent.
