LG Electronics has confirmed plans to implement voluntary retirement in its TV division next month.
According to the industry on the 19th, LG Electronics is accepting applications for voluntary retirement from employees aged 50 or older or those with poor performance in the Media and Entertainment (MS Business Division). Applicants will receive a severance payment equivalent to up to three years' salary based on years of service and the remaining time until retirement, along with support for children's education expenses.
LG Electronics previously implemented voluntary retirement in 2022 and 2023. The company explained that this implementation of voluntary retirement is also part of a workforce circulation strategy within the organization.
The MS Business Division, responsible for the TV business, is experiencing poor performance due to intensified competition with Chinese corporations. The MS Business Division recorded an operating loss of 191.7 billion won in the second quarter, marking a turnaround to a loss from an operating profit of 126.8 billion won in the same period last year. Its ranking in the global TV market also dropped from 2nd in 2020 to 4th.
According to market research firm Omdia, LG Electronics' market share in terms of shipment volume in the first quarter of this year is 10.7%, placing it 4th behind Samsung Electronics (19.2%), TCL (13.7%), and Hisense (11.9%).