In an effort to streamline its corporate governance, POSCO's POSCO Engineering & Construction Co. unit is seeking to lay off about 600 workers under a voluntary retirement scheme.

The layoffs account for more than 50% of the entire workforce of 1,000 employees, The Korea Times reported Sept. 30.

The company will start accepting resignations from Oct. 4, according to industry insiders.

In addition to the layoffs, the company is also closing its businesses in general construction, hydropower, ocean, environment and civil engineering to boost profitability.

The steel group is exploring multiple options for the loss-making engineering unit, including a potential sale or its combining with POSCO E&C, which has a 95.56% stake in POSCO Engineering.

The restructuring is part of POSCO's plan to cut approximately 1 trillion South Korean won, or approximately US$836 million, in costs this year by shutting 35 noncore business units, among others.

As of Sept. 30, US$1 was equivalent to 1,101.95 South Korean won.