Applications Accepted for Two Weeks Starting October 20
Open to Employees with at Least Three Years of Service
Up to 36 Months of Severance Pay Based on Remaining Years Until Retirement
Third Quarter Expected to Return to Profit on OLED-Focused Restructuring
Following the voluntary retirement program for production workers in the first half of this year, LG Display is now implementing a voluntary retirement program for office workers. This marks the first voluntary retirement program for office workers in about a year since November last year.
According to industry sources on October 16, LG Display held explanatory sessions for each department regarding the voluntary retirement program for office workers on this day and announced that it would accept applications for two weeks starting from October 20.
The program is open to employees with at least three years of service. Those who apply for voluntary retirement will receive a severance package of up to 36 months of base salary, depending on the remaining period until retirement age, as well as tuition support for their children. The total number of retirees will depend on how many apply.
LG Display plans to complete the voluntary retirement process for office workers by mid-November. This measure is seen as a response to increased market uncertainty due to rapid demand fluctuations and intensified price competition, as well as an effort to strengthen cost competitiveness and maintain efficiency across the company.
Previously, LG Display implemented a voluntary retirement program for production workers in June last year, and in November of the same year, carried out a voluntary retirement program for office workers for the first time in five years since 2019.
In June this year, the company also implemented a job rotation program to enhance employment stability, allowing employees to work at LG Innotek for about four months starting in July, while simultaneously running a voluntary retirement program for production workers.
Through these workforce optimization efforts, cost reductions, cost innovation, and a business structure upgrade centered on organic light-emitting diodes (OLED), LG Display is showing gradual signs of performance recovery.
According to a consensus compiled by Yonhap Infomax from reports issued in the past three months by nine securities firms, LG Display is expected to post an operating profit of 440.4 billion won in the third quarter, turning a profit. During the same period last year, the company recorded an operating loss of 80.6 billion won.
Securities analysts predict that LG Display will achieve an annual operating profit of more than 800 billion won this year.
Park Kangho, a researcher at Daishin Securities, analyzed, "The discontinuation of the liquid crystal display (LCD) panel business, reduction of low-profit products, workforce adjustments, and decreased depreciation costs in the large OLED panel division will result in fixed cost savings, which will be reflected in improved profitability in the third quarter."
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