LG Display Promotes Workforce Reallocation Among Affiliates

LGD "No Artificial Layoffs"

LG Display Paju Plant view. (Photo by LG Display)

[Asia Economy Reporter Moon Chaeseok] It has been confirmed that LG Display, struggling with poor performance, is pushing forward with a plan to transfer some personnel to its affiliates.

According to industry sources on the 23rd, LG Display sent an email to its employees informing them about the application process for transfer placement to affiliates. Recipients can apply for transfer placement to other affiliates such as LG Energy Solution, LG Electronics, and LG Chem according to their preference.

The target timing for the transfer placement is from the end of this year to early next year. The scale is expected to vary depending on the number of applicants.

LG Display stated, "This is to accelerate business structure reorganization and enable efficient personnel allocation," adding, "There are absolutely no plans for forced restructuring or voluntary retirement."

LG Display posted operating losses of 488.3 billion KRW in the second quarter and 759.3 billion KRW in the third quarter due to weak demand amid the global economic downturn.

The company decided to advance the domestic production end date of low-profitability LCD (liquid crystal display) TVs by six months to one year from the originally planned time next year and shift its business structure to focus on OLED (organic light-emitting diode).

Additionally, it plans to reduce this year's facility investment by more than 1 trillion KRW and review existing plans to ensure that next year's expenditure can be executed at about half the level of depreciation expenses.