Electronics giants scramble to cut costs through job cuts

Korean electronics giants LG Electronics and Samsung Electronics are scrambling to cut costs by launching programs aimed at downsizing their workforce, as their home appliance businesses are forecast to post disappointing numbers in the near future. According to industry officials on Thursday, LG Electronics will launch a voluntary redundancy program across all its business divisions, including Home Appliance Solution, Media Entertainment Solution, Vehicle Solution and Eco Solution. The program will target employees aged 50 and older or those with underperforming records. In return, the company will offer them standard severance pay and a package including up to three years of salary and two years of tuition support for their children. LG Electronics first implemented the policy last month in its Media Entertainment Solution division, which is in charge of its TV business, as the unit was the only one to post an operating loss in the second quarter, totaling 191.7 billion won ($138.5 million). It is the first time since 2023 that LG Electronics has offered a voluntary retirement program