Homeplus to Implement Voluntary Retirement from October 7 amid Store Reductions and Workforce Restructuring

Number of Stores Reduced from 126 to 67 Prior to Rehabilitation... Half of Employees Placed on Paid Leave
Applications Accepted from October 7 to 22... Unpaid Wages, Chuseok Bonus, and Severance Pay to Be Paid in November

Homeplus announced on October 7 that it will implement a voluntary retirement program to normalize business operations and improve profitability.

Yonhap News

The company explained that workforce restructuring has become unavoidable as the number of operating stores, which was 126 prior to the commencement of rehabilitation proceedings, has now decreased to 67 due to the closure of underperforming locations. At present, approximately 50% of all employees are on paid leave, and the decision for voluntary retirement was made to reduce fixed costs relative to sales.

The application period for voluntary retirement is from October 7 to October 22, and the scheduled retirement date is October 31. Severance pay will be provided on November 14. Employees who apply for voluntary retirement will also receive any unpaid wages and Chuseok bonuses, along with their severance pay, on the same day.

No specific target number of voluntary retirees has been set. The program will proceed within the limits of available operating funds, and applications may be closed early or canceled depending on future circumstances.

Homeplus stated, "We will do our best to improve profitability through structural innovation and accelerate the normalization of business operations, so that we can achieve a speedy management turnaround."

This content was produced with the assistance of AI translation services.