The big LCD Display manufacturer giant manufacturer has implemented voluntary retirement for office employees.

LG Display(LCD manufacturer) is implementing its first voluntary retirement program for office staff in the recently five years. The company has been experiencing consecutive losses in the past two quarters this year after recording a deficit of more than 2 trillion Korean won (about 10.24 billion yuan) last year. As a result, the company is undergoing additional restructuring.

According to foreign media reports on November 6th, LG Display will start accepting applications from employees who wish to voluntarily retire for two weeks starting the following day. The target group is employees who have worked for more than five years, are over 40 years old, or hold senior positions. Voluntary retirees can receive 30 months of basic salary, reemployment support (equivalent to 6 months of basic salary), and student loans as retirement support. LG Display plans to complete voluntary retirements for office employees before mid-December.

LG Display(LCD manufacturer) is changing its business structure to focus on OLED (organic light-emitting diode), including discontinuing its large-sized LCD (liquid crystal display) business and stopping production of LCD display panels from its older production lines in its turtle tail plant for small sizes. It appears that the implementation of voluntary retirement for office staff is aimed at improving the efficiency of human resource management for the surplus manpower generated during this process. LG Display explained that we are improving our management environment, but we still have excess manpower.

LG Display((LCD manufacturer) will prioritize improving financial strength and continue implementing intensive cost reduction activities, such as improving cost structure and operational efficiency. On the conference call after the announcement of the company's performance last month, LG Display's CFO, Kim Seong-hyun, stated that due to the implementation of a plan to improve workforce efficiency, labor costs for the whole year are expected to decrease by more than KRW 100 billion (approximately RMB 512 million). Furthermore, LG Display states that there is continued weak demand in the long term and a highly volatile external environment. We will also focus on upgrading our business structure centered around OLED to improve profitability.