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The winter is really coming? Samsung Shows Announces Early Retirement Plan to Reduce Staff

According to BusinessKorea, Samsung has shown an early retirement plan to cut its workforce and provide three-year salary for those applying for the program.

It is understood that Samsung's business unit began to take measures to implement the plan last week, and workers who have worked in the company for more than five years can apply. The company also transferred employees of some LCD display lines to the OLED production line.

A company insider said that the compensation plan includes two and a half years or three years of salary and an additional 10 million won ($8,390) per child for children with children. The company will provide tuition for their children until they graduate from college and consider additional compensation. The retirement benefit will be provided in the form of a pension through an Individual Pension (IRP) account.

A company official said that the details of the compensation plan vary according to the number of employees and the number of years of work.

Industry observers said Samsung showed that it is reducing its workforce. According to its business report, the number of employees of the company dropped slightly from 24,758 at the end of 2015 to 23,732 last year. In contrast, wages paid to employees surged from 2.14 trillion won ($1.8 billion) over the same period to 2.51 trillion won (2.1 billion US dollars). In 2017, operating profit was 3.38 trillion won ($2.84 billion), which increased the rapid increase in wages and paid compensation to applicants who implemented early retirement plans on schedule.