Home > Business > Industry

LG Electronics seeks voluntary resignations from employees amid weaker earnings

Published: 18 Sep. 2025, 11:46 Updated: 18 Sep. 2025, 20:28

The picture shows the stand of Korean manufacturer LG at the IFA international trade show on Sept. 5 in Berlin, Germany. [AFP/YONHAP]

LG Electronics has begun accepting voluntary resignations across all divisions, widening an exit scheme first introduced to its TV division last month as the company grapples with weaker earnings.

This is the first time in two years that LG Electronics has sought company-wide voluntary resignations.

The company is targeting employees aged 50 or older or those with several years of underperformance, industry sources said on Wednesday. Workers who leave will receive statutory severance pay in addition to compensation equivalent to up to three years of salary depending on their tenure and time left until retirement, as well as up to two years of tuition support for their children.

LG Electronics began offering voluntary retirement last month at its Media Entertainment Solution division, which oversees TVs. The division reported the company’s only operating loss in the second quarter of 2025, at 191.7 billion won ($138 million).

“Other divisions later reviewed the need for work force renewal, and some employees suggested expanding the program company-wide." the company said. "We decided to inform interested staff that they could apply.”

The program now covers the Home Appliance Solution, Vehicle Solution and Eco Solution business divisions. The company emphasized that the program is "voluntary."

Show attendees flock to the LG Electronics booth on the opening day at CES 2025 on Jan. 7 in Las Vegas. [AP/YONHAP]

LG Electronics CEO Cho Joo-wan said the company had consistently offered voluntary retirement over the past two to three decades.

“This time, it may look a little different. We need a virtuous cycle in work force structure,” Cho told reporters on Sept. 5 at the IFA Innovation For All in Berlin, Germany. “Voluntary retirement gives employees a second chance [in the work force]. I hope it becomes a path that both the company and employees can willingly choose in good faith.”

Concerns about falling earnings have spread through Korea’s electronics sector as Chinese competitors push low-priced products, global demand remains sluggish and U.S.-driven tariff risks weigh on exports.

Market tracker FnGuide projects LG Electronics’ operating profit will fall 21 percent from 3.41 trillion won in 2024 to 2.68 trillion won this year.

Samsung Electronics has also been streamlining, recently reassigning some engineers from its TV unit, the Visual Display division, to other parts of the company.

LG Electronics continues to operate multiple work force programs that consider age distribution and business needs. In addition to temporary voluntary retirement schemes, the company runs its “Bravo My Life” program, which allows employees aged 50 and older to devote half their working hours to entrepreneurship or technical training, with financial support for tuition.

The number of LG Electronics' regular employees in Korea aged 50 or older reached 7,025 in 2024, up more than 22 percent from 2022, according to the company’s latest sustainability report,

At the same time, LG Electronics is accepting applications for new hires until Monday, focusing on research and development in software, robotics, materials and telecommunications, as well as sales and marketing.

This article was originally written in Korean and translated by a bilingual reporter with the help of generative AI tools. It was then edited by a native English-speaking editor. All AI-assisted translations are reviewed and refined by our newsroom.
BY PARK HAE-LEE [[email protected]]