SK On launched voluntary retirement and unpaid leave programs to improve management efficiency. As the electric vehicle chasm (Chasm, a temporary demand stagnation) lengthened and profitability worsened, it is seen as moving to streamline the organization and improve the expense structure to boost management efficiency.
According to the industry on the 20th, SK On notified employees that it would implement voluntary retirement and unpaid leave programs that day. Those eligible for voluntary retirement are employees who joined before January 2025, and applicants will receive severance pay equivalent to 6 to 30 months of monthly salary, depending on years of service and age.
Along with this, it is also operating an unpaid leave system for self-development through the "Next Chapter" support program. If an employee enrolls in a job-related bachelor's, master's, or doctoral program, the company will support 50% of tuition for up to two years and pay the remaining 50% upon returning to work after earning the degree.
SK On also carried out voluntary retirement and unpaid leave in Sep. 2024.
The move is interpreted as aimed at responding to changes in market conditions due to a slowdown in the electric vehicle market and at increasing operational efficiency.
As growth in the electric vehicle market slows, workforce streamlining is appearing across the global battery industry. Japan's Panasonic recently announced plans to cut 12,000 jobs. Ultium Cells, a joint venture between General Motors (GM) and LG Energy Solution, also carried out large-scale job cuts and furloughs at its U.S. plants.
SK On plans to strengthen its revenue structure by pursuing demand creation and cost reductions in parallel, with the goal of reaching break-even (BEP) in the battery business within the year. It is also delivering results in the energy storage system (ESS) business, having recently beaten LG Energy Solution and Samsung SDI to secure more than 50% of volumes in the bid for Korea's second centralized ESS contracting market.
An SK On official said, "As business growth has slowed due to the electric vehicle chasm, this is to improve management efficiency and secure a foundation for sustainable growth," adding, "We will offer a variety of opportunities to build capabilities through self-development and provide the best support for members who want a new choice."