South Korean battery maker SK On to cut workforce amid challenging EV market

SEOUL : 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, Hyundai Motor and Volkswagen among others, has been struggling with a drop in battery shipments amid a global slowdown in EV sales.
Ford, General Motors, 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 per cent 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 per cent, versus the benchmark KOSPI’s 2.1 per cent rise as of 0357 GMT.
($1 = 1,329.1000 won)