Krakatau

State-owned steel producer PT Krakatau Steel

It 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,”

He 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.

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.

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.