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Photo courtesy of Yonhap News |
[Alpha Biz= Kim Jisun] Seoul, September 25 – CJ CGV, Korea’s largest multiplex cinema chain, has launched its second round of voluntary retirement this year as part of broader restructuring measures to address prolonged losses in its domestic theater business. The company has also completed departmental consolidations to streamline operations.
According to industry sources, CJ CGV recently invited applications for voluntary retirement from employees across the organization, with the process now in its final stages. The company also merged several departments, in some cases combining three teams into one, reflecting significant organizational changes aimed at improving efficiency.
The move comes as Korea’s theater industry continues to face structural decline, with audience numbers falling sharply. In the second quarter, CJ CGV reported KRW 141.8 billion in domestic box office sales, down 26.8% year-on-year, and posted an operating loss of KRW 17.3 billion. As of June, the company’s debt stood at KRW 3.3 trillion, roughly six times its equity of KRW 534.5 billion.
This marks the second voluntary retirement program in 2024. In February, CJ CGV carried out its first such program in four years, leading to the departure of about 80 employees. The company has also accelerated branch closures, shutting down 12 theaters this year, including locations in Paju, Uijeongbu, and Seoul’s Hagye district.
Internationally, CJ CGV closed its Los Angeles theater on September 21, exiting the U.S. cinema business after 15 years of losses in North America. Instead, the company plans to focus on growth markets in emerging economies and expand its premium cinema formats such as 4DX and ScreenX, where profitability is higher.
CJ CGV CEO Jong-min Jung emphasized during the company’s Q2 earnings call in August: “We are focusing on improving the profitability of our domestic cinema business while expanding 4Dplex globally to establish a high-margin business model.”
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
