South Korea’s shipbuilders will begin laying off employees in the wake of record losses last year and the government’s repeated announcements it would press the firms to cut costs and restructure their debts.

Hyundai Heavy Industries(HHI) kicked off the cuts by announcing it would relieve a quarter of the firm’s senior executives, or about 60 senior employees, in the first half of the year.

An HHI official said the move is aimed to ensure the firm’s survival in the face of a record decline in sales. The official added that the firm did not promote junior employees to replace the senior officials expected to leave the company in the coming weeks.

HHI has already asked its senior executives to give up half their salaries. The firm will also eliminate extended work on holidays and weekends and fixed extended work to cut wage costs.