CJ CGV, which operates a movie theater business, implemented a voluntary retirement program about two months after Jung Jong-min took office as CEO of CGV. This is the first voluntary retirement in four years since the COVID-19 pandemic began in February 2021.
According to the movie industry on the 9th, CGV conducted a voluntary retirement program last month targeting deputy-level employees with more than seven years of service. Approximately 80 employees left the company due to this voluntary retirement. It is reported that retirees received compensation of more than 100% of their monthly base salary based on their years of service.
This voluntary retirement is interpreted as a measure aimed at improving operational efficiency due to poor performance in the domestic theater business. As the domestic movie market contracted, CGV showed poorer performance in its domestic operations compared to previous years. Last year, CJ CGV generated sales of 758.8 billion won in the domestic theater business, down 14.5 billion won (1.9%) from the previous year. The operating profit recorded a loss of 7.6 billion won.
However, as the movie markets in Southeast Asia, including Vietnam and Indonesia, grew last year, overall sales and operating profit showed positive trends. Last year, CGV's sales amounted to 1.95 trillion won, an increase of 412.1 billion won (26.7%) compared to the previous year. The operating profit increased by 26.8 billion won (54.6%) to 75.9 billion won, achieving profit for the second consecutive year.