Seoul’s LG Display to go for job cuts through vol­un­tary re­tire­ment

Business Standard - - COMPANIES - JOYCE LEE

South Korea's LG Display Co Ltd , an Ap­ple sup­plier, will cut jobs through vol­un­tary re­tire­ment for the first time since its found­ing, a spokes­woman con­firmed on Satur­day.

LG Display plans to re­ceive ap­pli­ca­tions in Oc­to­ber for vol­un­tary re­dun­dancy among em­ploy­ees in pro­duc­tion that make up about 65 per­cent of its work­force, South Korean newspaper Cho­sun Ilbo re­ported ear­lier on Satur­day cit­ing the com­pany, adding the tar­get size of the vol­un­tary re­dun­dancy has not been de­cided.

The spokes­woman said the vol­un­tary re­tire­ment of­fer is driven by au­toma­tion as well as the com­pany's port­fo­lio switch from liq­uid crys­tal display ( LCD) to or­ganic light-emit­ting diode (OLED) screens, which re­quire fewer pro­duc­tion per­son­nel.

The com­pany will se­cure com­pet­i­tive­ness by in­creas­ing the por­tion of R&D work­ers and en­gi­neers, she added.

Prices of LCD screens, the com­pany's main­stay, have plum­meted partly due to Chi­nese com­pe­ti­tion, caus­ing LG Display to say in July it would slash $2.7 bil­lion in cap­i­tal spend­ing planned through 2020 in order to switch its port­fo­lio to OLED screens.

Com­pany of­fi­cials had pre­vi­ously said that it was not plan­ning lay­offs for fear of los­ing tal­ent to China.

The com­pany will se­cure com­pet­i­tive­ness by in­creas­ing the por­tion of R&D work­ers and en­gi­neers, said the spokesper­son

PHOTO: REUTERS

LG of­fi­cials had pre­vi­ously said they were not plan­ning lay­offs for the fear of los­ing tal­ent to China

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