South Korean battery maker SK On announced on Thursday that it plans to introduce voluntary redundancy programs as part of an effort to improve operational efficiency and adapt to challenging conditions in the electric vehicle (EV) market. The company, which supplies batteries to major automakers such as Ford Motor, Hyundai Motor, and Volkswagen, has been affected by slowing EV sales.
SK On, a subsidiary of SK Innovation, stated that it will offer special leave and voluntary departure options to its employees under the new efficiency measures. “These are proactive measures to establish a lean, agile workforce, so that we can better navigate shifting EV market conditions,” the company said in a statement. SK On emphasized its commitment to supporting the career development of its employees despite the restructuring, acknowledging their contributions to the company’s growth as a top-tier battery manufacturer.
The decision follows a broader trend in the automotive industry, with carmakers like Ford and General Motors delaying or canceling the release of new electric models due to lower-than-expected consumer demand. Northvolt, another major player in the EV battery market, recently announced plans to cut 1,600 jobs at its Swedish headquarters, citing production challenges and competition from Chinese manufacturers.
As part of its voluntary redundancy program, SK On will offer a severance package to employees who joined the company before November last year, including a payout of 50% of their salaries for early retirement.
The company employed 3,558 people as of June 2023, according to regulatory filings. Despite its position in the EV battery market, SK On has struggled to achieve profitability, reporting an operating loss of 460 billion won ($346.10 million) in the second quarter of this year, an increase from a loss of 332 billion won in the first quarter.
Source: Reuters
