Lotte Department Store will implement a voluntary retirement program for the first time in five years. The initiative targets long-serving employees while also continuing to hire new staff, aiming to restructure its workforce in response to the rapidly changing retail environment.
On September 21, Lotte Department Store announced that it will accept applications for voluntary retirement for about two weeks, until October 5. Employees with over 20 years of service are eligible, while those in positions GL2 and below can apply after 15 years of service. Participation is voluntary.
Retiring employees will receive 40 months of their base salary and a job placement support fund of 20 million won. For those in positions GL2 and below, the support fund will be 25 million won. Additionally, educational support for children will be provided, covering up to 10 million won per child.
Support measures for career preparation after retirement are also in place. Applicants will be offered a paid 'restart' leave for three months and will have access to a 'step-up' job training program.
This marks the second voluntary retirement program since the first was implemented in 2021, which targeted around 2,000 employees with over 20 years of service. At that time, participants received 24 months of salary and a consolation payment of 30 million won, along with educational support for children. Approximately 500 employees, or about 25% of those eligible, applied for the program.
Alongside the voluntary retirement program, Lotte Department Store will continue to hire new staff. In the first half of this year, the company recruited new employees for sales, merchandise planning, and marketing roles, with plans to focus on hiring for sales positions in the second half.
Five years ago, Lotte Department Store also pursued a significant number of new hires following the voluntary retirement program, aiming to reduce long-term staff and bring in younger talent as part of its workforce restructuring.
The current approach of combining voluntary retirement with new hiring suggests a focus on generational change and job restructuring rather than merely reducing headcount.
A Lotte Department Store representative stated, "We plan to continue strengthening the competitiveness of our key stores while expanding differentiated content and customer experiences, as well as pursuing overseas business expansion and securing new growth engines for sustainable growth."
* This article has been translated by AI.
Copyright ⓒ Aju Press All rights reserved.