Hyundai to Cut 5,000 Jobs Amid Growing Rivalry

Hyundai Motor Co., South Korea’s biggest auto manufacturer, said Tuesday that it will cut 5,000 jobs--a ninth of its work force--by 2000 amid rising costs and increasing competition.

The move comes as Hyundai braces for fiercer rivalry. The fledgling Samsung Motor Inc. could take over near-bankrupt Kia Motors Corp. to quicken the pace for the new entrant to leap into the major league, analysts said.

“I believe Samsung’s full-scale attack is behind Hyundai’s decision,” said James Son, an auto analyst at SBC Warburg Dillon Read.

Hyundai said it will also trim a fifth of its 152 executives over the next three years, as well as merge its 14 business sectors into seven.