LG’s Sengun ‘hit hard’ by China…after all

LG Healthcare, which saw a significant drop in sales last year, is offering voluntary retirement for the first time in the company.

According to LG Life Sciences on the 2nd, the company will accept applications for voluntary retirement until the 14th of this month for employees안전놀이터 aged 50 or older who are division heads or team leaders, or those with seven or more years of experience as division heads and 10 or more years as team leaders.

In addition to the statutory severance pay, employees who apply will receive up to three years of basic annual salary depending on their year of birth, as well as scholarships for children of middle and high school and university students (within the semester limit up to the retirement age).

LG Life Sciences explained that the programme is “a measure to improve workforce stagnation and create a virtuous cycle for the company’s sustainable growth.”

This is the first time LG Life Sciences has implemented a voluntary retirement programme since its spin-off from LG Chem in 2001.

LG Life Sciences saw its sales (7.18 trillion won) fall 11.2 per cent last year from the previous year, its first decline in 18 years, due to a sluggish Chinese business.

Operating profit (711 billion won) also plummeted 44.9 per cent, failing to exceed 1 trillion won for the first time since 2017. Operating profit (145.9 billion won) in the first quarter of this year was down 16.9 per cent from the same period last year.

Amorepacific, which is suffering from poor performance in China, also announced voluntary retirements for the first time since its founding in 2020.

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