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South Korean battery maker SK On plans to cut workforce, sources say
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South Korean battery maker SK On plans to cut workforce, sources say
Oct 3, 2024 1:37 AM

SEOUL, Sept 26 (Reuters) - South Korean battery maker SK

On plans to introduce voluntary measures aimed at reducing its

workforce, as the company seeks to improve efficiency and remain

competitive in a challenging electric vehicle market, industry

sources said on Thursday.

SK On, the battery unit of energy group SK Innovation

, intends to offer programmes offering special leave

and voluntary departure options as part of an efficiency scheme,

the people with knowledge of the matter said.

"Nothing has been confirmed at this time," an SK On

spokesperson said in a statement.

SK On, which supplies EV batteries to Ford Motor ( F ),

Hyundai Motor ( HYMTF ) and Volkswagen among

others, has been struggling with a drop in battery shipments

amid a global slowdown in EV sales.

Ford, General Motors ( GM ), and other carmakers have

delayed or cancelled new electric models to avoid spending

heavily on vehicles that consumers are not buying as quickly as

anticipated.

As part of the efficiency measures, SK On is set to offer a

voluntary package to employees who agree to leave, including

offering staff who joined the company before November last year

50% of their salaries to retire early, the sources said.

The company employed 3,558 people as of the end of June this

year, a regulatory filing showed.

SK On, which has never made a profit since it was split off

from SK Innovation in 2021, booked an operating loss of 460

billion won ($346.10 million) in the April-June quarter, versus

a loss of 332 billion won in the previous quarter.

Shares of SK Innovation were trading down 1.2%, versus

benchmark KOSPI's 2.1% rise as of 0232 GMT.

($1 = 1,329.1000 won)

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