SK On, the battery unit of South Korea's chip-to-construction conglomerate SK Group, said Thursday it has offered a retirement program to its employees to ride out the slowdown in electric vehicle sales. SK On has decided to adopt the "efficiency measures" to reduce its workforce and stay competitive against challenging EV market conditions, people familiar with the matter told Yonhap News Agency. The company confirmed the voluntary retirement package for workers who joined the company before November 2023. SK On employees stood at about 3,500 as of end-June. If they opt to retire early, the company will offer 50 percent of annual salaries plus a lump-sum cash payment. It also proposed an unpaid leave option to its employees, an SK On spokesperson said over the phone. "These proactive measures are aimed at establishing a lean, agile workforce, so that we can better navigate shifting EV market conditions," he said. This undated file photo provided by SK On shows its battery plant in Seosan, some 100 kilo meters southwest of Seoul. (PHOTO NOT FOR SALE) (Yonhap) This undated file photo provided by SK On shows its battery plant in Seosan, some 100 kilometers southwest of Seoul. (PHOTO NOT FOR SALE) (Yonhap) SK On said it will help employees use the "special leave program" to recharge and advance their professional skills for the future. The company will support half of tuition costs for two years for 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, the spokesperson said. In July, SK On announced it will make companywide cost-cutting efforts that include freezing the salaries of all executives until it turns a profit. 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). 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 Innovation Co., the country's leading refiner, holds an 89.52 percent stake in SK On. Source: Yonhap News Agency
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