SK Group is said to have moved up its year-end executive reshuffle and will start implementing it as early as next week. In particular, a large-scale workforce reduction is being discussed for this reshuffle. Not only SK Telecom, the group's cash cow, but also the SUPEX Council, SK Group's top consultative body, are said to be planning major staff cuts.
According to the business community on the 7th, SK Telecom recently received resignations from C-level executives and began notifying executives targeted for departure. The decisive factor was the fallout from the hacking incident in April, which led to the company's first-ever quarterly loss in the third quarter. Forecasts suggest as many as 30% of executive positions could be cut.
Executive reshuffles at other SK Group affiliates also appear likely to proceed in sequence. SK Innovation, which has struggled with deteriorating results, has already replaced the CEOs of three subsidiaries and reduced executives. However, SK hynix, buoyed by a semiconductor boom, is expected to avoid the "cold wind" of this round of workforce reductions. Considering chain moves among affiliates, the personnel announcements are said to be planned for early December.
The SUPEX Council, which is staffed and operated with employees seconded from affiliates, is also reportedly set for a 40% to 50% reduction. The plan is to leave execution functions to affiliates while retaining planning and strategy functions. The fact that the Supreme Court overturned and remanded the appeals court ruling in SK Group Chairman Chey Tae-won's divorce case, helping him clear a major hurdle, also appears to have had an impact.