KT offers 6,000 employees buyouts in hard pivot to AI

KT’s headquarters in central Seoul [YONHAP]

 
KT will reportedly offer up to 6,000 employees the option to take a buyout of up to 430 million won ($314,329) or transfer divisions as the mobile carrier embarks on a major restructuring, reallocating resources and personnel from its traditional base of telecommunications to its new pillar of AI. 
 
KT’s board of directors approved the establishment of two network operations subsidiaries, tentatively dubbed KT OSP and KT P&M, on Tuesday, to broad opposition from the company’s labor union, which had been staging a sit-in at its offices in protest of the restructuring. The carrier said Thursday, however, that it had reached an agreement with the union and would initiate the buyout program next week.
 
A KT spokesperson declined to provide further details of the agreement. 
 
 
All KT employees with roles related to network operations who have worked for at least 15 years and have at least six months remaining until retirement age, as well as certain workers in additional unprofitable divisions that are being dissolved as part of the restructure, will have the option to take the buyout or be reassigned. Employees in network operations who do not meet the buyout criteria will be required to transfer. 
 
Some transferring employees will be offered new roles at KT OSP and KT P&M while others will move to different divisions. KT says it will take into account “individual preferences, expertise and skill levels” in the reallocation and will provide an eight-week training program to ease the transition.
 
“This work force restructuring is part of our transformation into an AI Intelligence & Communication Technology [AICT] company, aimed at streamlining on-site operations by forming specialized companies,” KT said in a statement. “We will do our best to have the benefits of this transformation contribute to industrial development and ultimately strengthen the nation’s competitiveness.”
 
Applications for the reassignment to new subsidiaries or other affiliates will be accepted from next Monday to Oct. 24, and from Oct. 25 to 28. Submissions for voluntary retirement package will be accepted from Tuesday to Nov. 4. 
 
KT OSP and KT P&M will be registered as legal entities by Jan. 1. of next year. KT OSP will design and construct communication lines while KT P&M will design power facilities within KT’s network stations. 
 

BY LEE JAE-LIM [[email protected]]