SK On, the battery unit of South Korea’s chip-to-construction conglomerate SK Group, will reduce its workforce to ride out the current slowdown in electric vehicle sales, industry sources said Thursday.
SK On has decided to adopt the “workforce efficiency” measures to stay competitive against challenging EV market conditions, a person with direct knowledge of the matter told Yonhap News Agency.
Under the efficiency measures, SK On will offer a voluntary retirement program and an unpaid leave option to its employees, he said.
SK On will offer 50 percent of annual salaries plus a lump sum cash payment to those who joined the company before last November if they opt to retire early, the person said.
The company will support half of tuition for two years to workers pursuing academic degrees during their unpaid leave. If they earn degrees related to their professions and return to work, they will receive the remaining half of the tuition, he said.
An SK On spokesperson said, “Nothing has been confirmed at th
is time.”
Car battery makers have suffered from lower utilization rate in their plants and higher costs amid the EV chasm, which occurs before the widespread adoption of pure electric cars.
SK On has posted operating losses for the past 11 consecutive quarters since it began operations in October 2021. In the second quarter ended in June, it reported an operating loss of 460 billion won (US$346 million).
Source: Yonhap News Agency