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Photo courtesy of Yonhap News |
[Alpha Biz= Kim Jisun] Lotte Wellfood said Monday that it is implementing a voluntary retirement program this year, following a similar initiative carried out last year.
The company said the move is part of efforts to proactively respond to a rapidly changing business environment and to secure future competitiveness through organizational streamlining. “As part of our organizational efficiency initiatives, we are currently operating a voluntary retirement program for a limited group of employees,” Lotte Wellfood said.
Lotte Wellfood previously introduced a voluntary retirement program in April last year.
The latest program applies to employees aged 45 and older (born in 1981 or earlier) with at least 10 years of service. The company said it plans to support participating employees in planning a stable second career.
In addition to statutory severance pay, employees with 10 to less than 15 years of service will receive compensation equivalent to 18 months of base salary, while those with 15 or more years of service will be paid 24 months of base salary. Additional benefits include a re-employment support payment of KRW 10 million and university tuition support of up to KRW 10 million per dependent student.
Alongside organizational restructuring, Lotte Wellfood said it will accelerate efforts to strengthen future competitiveness by fostering mega brands and expanding its global footprint.
The decision comes amid weaker profitability. On a consolidated basis, Lotte Wellfood posted record-high revenue of KRW 4.22 trillion last year, up 4.2 percent year-on-year. However, operating profit fell 30.3 percent to KRW 109.5 billion, and the company recorded an operating loss of KRW 10.5 billion in the fourth quarter.
The company attributed the decline in earnings to rising raw material costs—including cocoa and dairy products—as well as one-off expenses.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
