Samsung Display Co. has launched an early retirement program to trim its workforce. It is offering three years' salary to those who apply for the program.
The company’s business units started to take steps last week to implement the program. Workers who have been with the firm for more than five years can apply for it. The company is also transferring some employees at LCD lines to OLED lines.
A company insider said that the compensation package includes a salary for two and a half years or three years and an additional 10 million won (US$8,390) per child for applicants who have children. The company will provide applicants with tuition fees for their children until they graduate from university and is considering additional compensation. The retirement allowance will be provided in the form of pension through an individual retirement pension (IRP) account.
A company official said that details of the compensation package differ according to the staff level and years of working.
Industry watchers say that Samsung Display is reducing its workforce. The number of the company’s employees slightly decreased from 24,758 at the end of 2015 to 23,732 last year, according to its business report. In contrast, the amount of wages paid to its employees surged from 2.14 trillion won (US$1.80 billion) to 2.51 trillion won (US$2.10 billion) over the same period. The rapid increase in wages was boosted by bonuses paid based on operating profits of 3.38 trillion won (US$2.84 billion) in 2017 and compensations paid to applicants to the early retirement program implemented on a standing basis.