Nam Hyun-woo has worked as a staff writer at The Korea Times since 2013, mostly covering business and politics. He currently belongs to the Business Desk where he covers topics such as emerging tech, AI, ICT and Korea's chaebol community. Prior to joining the team, he was the paper's correspondent for the presidential office of Korea during the Yoon Suk Yeol and Moon Jae-in administrations.
Electronics giants scramble to cut costs through job cuts
Audiences visit LG Electronics' booth at IFA 2025 in Berlin, Sept. 8. Courtesy of LG Electronics
By Nam Hyun-woo
But Samsung Group to hire 60,000 new workers in next 5 years
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 across all of its divisions.
Samsung Electronics also appears to be streamlining its workforce by expanding voluntary retirement offers, which had previously targeted only department leaders and executives, at its Visual Display division, which oversees its TV business.
The company has also reportedly begun a “management review” of the division for the first time since 2015. The review will examine overall management and development processes, reallocate personnel and streamline operations in preparation for expected downturns.
Visitors look at a TV at Samsung's booth at IFA 2025 in Berlin, Sept. 7. Courtesy of Samsung Electronics
The two companies’ moves are believed to be in line with disappointing earnings outlooks stemming from a slowdown in TV and home appliance sales.
Brokerages' consensus on LG Electronics' operating profit for this year remains at 2.68 trillion won, which is down 21 percent from last year's 3.42 trillion won.
During its second-quarter earnings call, the company muted expectations for its TV business, saying that "lingering geopolitical uncertainties are weighing on consumer sentiment and making a recovery in hardware demand unlikely."
It also projected that weak domestic demand in China will continue to drive Chinese firms towards aggressive overseas expansion, intensifying competition across the industry.
Samsung Electronics faces a similar situation. Brokerages expect the operating profit of the company’s TV division will remain at 600 billion won this year, down from 1.1 trillion won last year.