LG Magna e-Powertrain is planning its second round of workforce reductions this year as the electric vehicle parts maker grapples with plummeting sales and mounting losses.
The joint venture between LG Electronics and Magna International may cut up to 30% of staff in some divisions, according to industry sources. The restructuring targets units producing drive motors, chargers and inverters.
The company’s revenue fell to 227.4 billion won ($175 million) in the first half of 2023, less than half the 499.5 billion won reported a year earlier. Despite growing order backlogs, the venture posted a net loss of about 50 billion won ($38.5 million) in the first six months, reversing its first profit achieved in 2022.
Profitability concerns plague key contracts, including motors supplied to Hyundai Motor Group’s EV9 model. The restructuring also comes as potential changes to U.S. electric vehicle policies add uncertainty, with the company counting General Motors among its major customers.
This follows a previous workforce adjustment in June, when affected employees were transferred to other LG units. The company said specific plans for the new cuts haven’t been finalized.
