Troubled Daewoo Shipbuilding & Marine Engineering is set to undergo restructuring, including job cuts and assets selloff worth 400 billion won ($338 million), as it battles to cope with mounting losses and lack of orders.

“The company’s reorganization will be carried out on Sept. 1. With the slim-down, some high-level officials will resign due to overlapping duties,” a DSME official said Monday.

The restructuring program will directly affect 1,300 jobs, including 30 percent of general managers and other high-ranking officials. The company is offering them a voluntary retirement scheme.

The massive restructuring drive came as the nation’s No. 2 shipbuilder posted over 3 trillion won in losses in the first quarter. It blamed construction delays on offshore projects, such as oil and gas rigs, for the losses.

The cash-strapped shipbuilder will cut down the number of teams to 70 from the existing 100 by merging or abolishing underperforming divisions.

In line with the reorganization, DSME chief executive and president Jung Sung-leep has directed to put company properties up for sale as part of its rescue program.

Assets likely to be sold off include two office buildings in Seoul and a golf course just outside the capital city, according to the sources.

The shipbuilder estimates that it can sell its headquarters near the Cheonggyecheon Stream for 160 billion won, one in Dangsan area for 40 billion won and the golf course Sunning Point Country Club for 180 billion won.

“DSME will speed up the asset sales this year, but core assets will be kept for future growth,” the official said.

It plans to dispose its 51 percent stake in Daewoo-Mangalia Heavy Industries, a shipyard it bought in Romania 18 years ago.

The company, however, plans to keep a factory in China and an engineering center in Tajikistan.

By Park Han-na (hnpark@heraldcorp.com)