SK On, a South Korean battery manufacturer, announced on Thursday its intention to implement voluntary redundancy programs as part of efforts to improve efficiency and maintain competitiveness in the challenging electric vehicle (EV) market. The company supplies EV batteries to major automakers including Ford Motor, Hyundai Motor, and Volkswagen.
In a statement, SK On, a subsidiary of energy group SK Innovation, revealed plans to offer special leave and voluntary departure options to employees. “These are proactive measures to establish a lean, agile workforce so that we can better navigate shifting EV market conditions,” the company stated. “While we push to improve efficiency and secure grounds for sustainable growth, we are fully committed to supporting the career development of our employees who have contributed to our success in becoming a top-tier battery maker.”
The announcement comes as the EV market experiences slowing sales, impacting battery manufacturers worldwide. Automakers such as Ford and General Motors have delayed or canceled new electric models to avoid significant spending on vehicles that consumers are purchasing more slowly than anticipated. Swedish battery maker Northvolt also announced plans this week to cut 1,600 jobs, about a fifth of its global workforce, due to production challenges, sluggish demand, and competition from China.
As part of its efficiency measures, SK On plans to offer a voluntary package to employees who agree to depart, including providing staff who joined before November last year with 50% of their salaries to retire early. According to regulatory filings, the company employed 3,558 people as of the end of June this year.
SK On has not reported a profit since it was spun off from SK Innovation in 2021. The company posted an operating loss of 460 billion won ($346.10 million) in the April-June quarter, compared to a loss of 332 billion won in the previous quarter.
Source: Reuters
