South Korean online retailer Lotte On offers first-ever voluntary retirement program since launch

Lotte On, the online division of South Korean retailer Lotte Shopping, is offering voluntary retirement for the first time since its founding.
According to an industry source on the 5th, the company is suspending the employment of employees who joined the company before June 7, 2021 and have worked there for more than three years.
The company has begun accepting applications for voluntary retirement from employees. Applications are being accepted until the 14th of this month, and employees who are approved will be given two options: to receive six months' salary in one lump sum, or to take six months of paid leave before retiring.
The company explained that this move is aimed at strengthening its organizational capabilities by optimizing human resources amid intensifying competition in the e-commerce market.
The company, which was established in 2020 as an integrated online mall for the South Korean Lotte Group, has recorded losses of about 100 billion won (about 11.4 billion yen) every year since its founding and is facing management challenges.
Last year, the company reported an operating loss of 85.6 billion won (US$90 million), and in the first quarter of this year (January to March), it recorded a loss of 22.4 billion won (US$25 million), a steep decline from the same period last year.
The width was increasing.