LG Electronics is implementing a voluntary retirement program for employees aged 50 and older in the MS Business Division as part of its workforce restructuring efforts.
According to industry sources on August 18, this voluntary retirement program is based on individual applications. Eligible employees will receive up to three years’ salary and educational support for their children, depending on their length of service and the time remaining until retirement age. The company stated, "This measure is aimed at facilitating healthy workforce rotation and strengthening organizational competitiveness." LG Electronics previously operated similar programs in both 2022 and 2023.
The MS Business Division is responsible for visual and information devices such as televisions, monitors, laptops, and signage, and is expanding its platform business based on its proprietary operating system, webOS.
However, recent business performance has been sluggish. According to LG Electronics’ second-quarter results, the MS Business Division recorded sales of 4.3934 trillion won and an operating loss of 191.7 billion won, turning to a deficit. In contrast, the Home Appliance, Vehicle Component Solutions, and Heating, Ventilation, and Air Conditioning (HVAC) divisions all posted record-high quarterly results.
In addition to the voluntary retirement program, LG Electronics also operates the 'Bravo My Life' initiative, which supports employees aged 50 and older in planning the next stage of their lives.
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