Homeplus Implements Voluntary Retirement Amid Store Closures

Homeplus is implementing a voluntary retirement program.
 
This move comes as the number of operating stores has nearly halved during the corporate rehabilitation process, aimed at reducing fixed costs such as labor expenses to expedite business normalization.
 
Homeplus announced that it will accept applications for voluntary retirement from October 7 to 22, with the retirement date set for October 31. Severance pay will be disbursed on November 14.
 
Those who apply for voluntary retirement will receive unpaid wages, holiday bonuses, and severance pay in a lump sum. The program is open to employees at both the headquarters and stores, but no additional compensation has been specified.
 
The voluntary retirement initiative is primarily aimed at restructuring the workforce and cost structure due to the reduction in store numbers. Before entering the rehabilitation process, Homeplus operated 126 stores, but after closing underperforming locations, it currently runs only 67 stores. As a result, about 50% of the total workforce is currently on paid leave.
 
Homeplus explained that it faces a high burden of fixed costs, including labor expenses, relative to its sales volume. The company stated that implementing voluntary retirement is essential to improve business viability and accelerate the normalization of operations through structural innovation.
 
There is no set target for the number of employees to be retired voluntarily. Homeplus plans to accept applications within the limits of available operating funds, and there is a possibility that the program may close early or be canceled depending on financial conditions.
 
Previously, Homeplus submitted a revised rehabilitation plan focused on restructuring its business around 67 core stores. Following the reduction in store numbers, the ongoing workforce reallocation and paid leave have led to this voluntary retirement being viewed as an additional self-rescue measure following store restructuring.
 
A Homeplus representative stated, "With the significant reduction in the number of operating stores, the burden of fixed costs relative to sales is excessively high. We will do our utmost to improve business viability and achieve early normalization through structural innovation."