STX Offshore & Shipbuilding Co plans to cut jobs via a voluntary retirement initiative as it looks to reduce costs on the back of a weak newbuilding market and the Covid-19 pandemic.

The midsize South Korea shipbuilder said it would be difficult to compete against rivals unless its fixed costs were released, as reported by South Korean news agency Yonhap.

The shipbuilder has not secured any new orders in the first half of the year, with an order backlog of just seven ships to be built by the first quarter of 2021.