South Korean telecom giant KT Corp is gearing up for a significant restructuring, including the creation of two new subsidiaries and the introduction of a voluntary retirement program. The move could see the company’s headquarters workforce shrink from about 18,000 to 12,000 employees.
KT’s board is set to meet on October 15 to finalize plans for establishing KT OSP and KT P&M, slated to begin operations on January 1. The subsidiaries will focus on field operations and customer service, respectively, with KT OSP starting with 71 billion won ($52.7 million) in capital and KT P&M with 10 billion won ($7.4 million).
The restructuring involves transferring nearly 3,800 headquarters staff to these new entities. Additionally, KT is offering voluntary retirement packages with payouts ranging from 165% to 208.3% of standard severance, potentially exceeding 300 million won ($222,700) in some cases.
CEO Kim Young-seop, who took the helm in August, is spearheading this transformation as KT seeks to position itself as an AI and ICT specialized company. Despite the detailed plans, KT maintains that “Nothing has been decided yet,” refraining from further comment.
This restructuring reflects broader industry trends towards digital transformation and AI, as KT aims to enhance its competitiveness in the evolving telecommunications landscape.
