LG CHEM has begun offering voluntary retirement in its advanced materials institutional sector following its sluggish petrochemicals institutional sector. It is expanding the scope of voluntary retirements from semiconductors, battery materials, and specialty to advanced materials.
On Dec. 8, LG CHEM said it is surveying current employees in the advanced materials business unit on their intent to take voluntary retirement. those surveyed include both office and production workers up to those born in 1970 (age 55). The severance package for voluntary retirement can be up to 50 months of salary. Employees with three years or less left until the mandatory retirement age will be compensated to make up the remaining months.
The voluntary retirements carried out on Aug. 8 targeted employees in the petrochemicals institutional sector. The company is also taking additional voluntary retirements from those age 58 and older who are under the wage-peak system. The terms for voluntary retirement are salary compensation equal to the remaining period until the mandatory retirement age.
In both advanced materials and petrochemicals institutional sectors, the company is proceeding by individually asking each eligible person's intention. LG CHEM appears to have made this decision to streamline the entire organization as it faces the task of restructuring the Yeosu naphtha cracking center (NCC).
LG CHEM's petrochemicals institutional sector posted annual operating losses of 143.5 billion won and 135.8 billion won in 2023 and last year, respectively, and recorded a cumulative operating loss of 117.0 billion won in the third quarter this year.