Amorepacific is planning to cut its headcount through offering voluntary retirement in the wake of the pandemic.
According to news reports on Friday, the cosmetics giant announced through an internal notice that it would accept applicants for voluntary retirement from employees who have worked for the company for more than 15 years.
“We posted an announcement this afternoon that the firm would accept applicants for voluntary retirement. We have not decided on the number of people yet,” an official said.
Employees with 15 years or more will be paid compensation by adding five months’ salary to their years of service. In other words, employees who have worked for 15 years will receive 20 months of compensation. Employees who have worked 20 years or more will be paid 40 months’ worth of compensation.
Amorepacific is in need of cost savings due to continued deterioration of its management as the growth of duty-free shops and sales in China have been faltering.
By Shin Ji-hye (email@example.com)