Full-swing Restructuring
According to industry sources on June 2, GS Caltex decided to conduct a voluntary retirement program as early as this month to shed 20 percent of team managers. It will do so by amalgamating several teams.
This is the first time for the company to institute a voluntary retirement plan after 2012, which can be interpreted as its efforts to deal with its worsening performance.
SK Energy, the nation’s largest oil refinery, has recently been undertaking partial restructuring of its business, as seen by closing its facilities in the Seoul metropolitan area and a rearrangement of personnel. The company is working on corporate reorganization to improve the efficiency of its business by combining energy storage facilities scattered around the Seoul metropolitan area into one facility in Incheon.
Meanwhile, operating profits of SK Energy decreased sharply from 391.9 billion won (US$382.5 million) in the first quarter of 2013 to 52.5 billion won (US$51.2 million) in Q1 2014. GS Caltex also saw its operating profits shrink from 374.2 billion won (US$365.2 million) to 69.22 billion won (US$67.6 million) during the period.