Lotte Department Store to let 2,000 employees go on its first redundancy program
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The major department store operator in South Korea under retail giant Lotte Group is offering early retirement packages comprised of two years worth of salary plus a severance pay of 30 million won ($25,500).
Employees eligible for the voluntary early retirement program are those who have worked for 20 years or longer, Lotte Department Store said Friday.
The company will also provide tuition benefits for each employee’s dependent child(ren), worth up to 32 million won, as well as one-month paid leave and four-month training on finding a new job.
It will receive application from the eligible employees until Oct. 8.
Lotte Department Store had 4,700 employees working as of June this year, and 2,000 have worked for 20 years or longer.
In-house announcement on the voluntary early retirement program was made on Thursday, according to the company.
After ending the voluntary early retirement program, the department store plans to hire new employees in hopes to transform the organization younger at a time of the fast-changing business environment for the retail industry from the expansion of the e-commerce business.
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