(Bloomberg) -- South Korean battery producer SK On Co. is offering employees voluntary measures meant to shrink its workforce, as the industry grapples with electric vehicle sales’ slowdown.
The package includes options for early retirement or unpaid leave to pursue a degree — with fees subsidized 50% by the company — SK On said in a statement on Thursday.
The offer is being made to employees based in South Korea who joined the company before November 2023, it said. The company has some 3,500 workers at its headquarters in Seoul.
“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.”
The plans come as SK On, which provides batteries to automakers including Ford Motor Co. and Hyundai Motor Co., grapples with sluggish demand growth for EVs. The unlisted company, a unit of SK Innovation Co., has posted operating losses every quarter since 2021 amid an overseas expansion push.
Reuters first reported the news earlier Thursday.
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