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LG launches voluntary retirement program for 2nd straight year amid AI transformation

Published: 14 Apr. 2026, 17:44 Updated: 14 Apr. 2026, 20:09

An attendee passes by a display of LG evo W6 Wallpaper televisions at the LG Electronics booth during CES 2026 in Las Vegas on Jan. 7. [REUTERS/YONHAP]

LG Electronics has launched a voluntary retirement program for the second straight year as it trims its existing work force and redirects resources to AI and other new business areas.

The move reflects the company’s broader strategy of narrowing its focus in slower-growth operations while expanding the work force in future growth sectors.

LG Electronics recently began accepting applications for voluntary retirement across all business divisions, according to industry sources on Tuesday.

The program is reportedly aimed mainly at long-serving employees and employees without current assignments. Some workers in their 40s and some lower-performing employees are also said to be included. The package offers severance pay of up to three years' salary, as well as tuition support for employees’ children.

“It is a program that has been running regularly to promote healthy work force turnover and strengthen competitiveness, regardless of company performance,” an LG Electronics source said. “It will be carried out on a small scale and entirely on a voluntary basis.”

Models look at an LG Electronics OLED television on March 26 [LG ELECTRONICS]

LG Electronics also carried out a voluntary retirement program last year.

Last year's program mainly targeted lower-performing employees, as well as those over 50 but still below the rank of department head. The retirement-related costs at the time were estimated at 300 billion won to 400 billion won ($200 million to $271 million).

Those one-off expenses pushed the company into its first quarterly loss in nine years in the fourth quarter of last year. It returned to the black the following quarter, however, posting 23.7 trillion won in revenue and 1.7 trillion won in operating profit.

The latest program is widely seen as part of LG Electronics’ effort to reshape its business around AI transformation. The company plans to channel the human and financial resources secured through the program into AI and business-to-business operations, which it sees as future growth drivers.

LG Electronics is also accelerating work force reallocation while expanding hiring for both experienced and entry-level roles in new businesses, such as data center cooling and smart factory solutions.

BY LEE YOUNG-KEUN [[email protected]]