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South Korean battery maker SK On to cut workforce amid challenging EV market
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South Korean battery maker SK On to cut workforce amid challenging EV market
Sep 26, 2024 11:26 PM

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

On said on Thursday it 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.

SK On, the battery unit of energy group SK Innovation

, said in a statement it plans to offer programmes

offering special leave and voluntary departure options as part

of an efficiency scheme.

"These are proactive measures to establish a lean, agile

workforce, so that we can better navigate shifting EV market

conditions," SK On said.

"While the company pushes 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," it said.

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 car makers 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 said it 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 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 0.9%, versus the

benchmark KOSPI's 2.1% rise as of 0357 GMT.

($1 = 1,329.1000 won)

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