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Photo = Yonhap news |
[Alpha Biz= Kim Jisun] CJ CGV, Korea’s largest multiplex chain, has conducted its first voluntary retirement program since the COVID-19 pandemic.
According to the film industry on Sunday, CGV carried out a voluntary retirement program last month for assistant managers and higher-level employees with seven or more years of service.
As a result, around 80 employees have left the company. The retirees reportedly received severance packages that included at least 100% of their monthly base salary per year of service as compensation.
This marks the first voluntary retirement at CGV in four years, with the last one occurring in February 2021.
A CGV representative explained, "Due to the challenges faced by the domestic theater industry, we have implemented voluntary retirement as part of our management efficiency efforts."
The domestic film market struggled last year due to the lack of major box office hits, leading to a decline in CGV’s domestic business performance.
In 2023, CJ CGV’s domestic theater business revenue stood at 758.8 billion KRW, down 14.5 billion KRW (1.9%) from the previous year. The company also posted an operating loss of 7.6 billion KRW, returning to the red.
However, CGV saw strong performance in Southeast Asian markets such as Vietnam and Indonesia, driving overall revenue growth.
In 2023, CJ CGV's total revenue surged to 1.9579 trillion KRW, a 412.1 billion KRW (26.7%) increase from the previous year. Operating profit also rose by 54.6% (26.8 billion KRW) to 75.9 billion KRW, marking its second consecutive year of profitability.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
