Kakao Entertainment to offer redundancy packages to employees with over decade of experience

Industry

Published: 14 Jun. 2023, 16:34

Kakao Entertainment to offer redundancy packages to employees with over decade of experience

[KAKAO ENTERTAINMENT]

Kakao Entertainment is letting go of employees with over a decade of experience as part of its revamped turnover management program.

Kakao Entertainment said it is receiving applicants for its redundancy program dubbed "Next Chapter," which offers a maximum of 15 months of advanced basic salary and a support fund of 5 million won ($3,910). Severance pay will also be given.

Only employees with more than 10 years of experience can apply.

“The program is being conducted on behalf of staff rotation,” a spokesperson from Kakao Entertainment said. “As seen through big investments that the company received at the beginning of this year, our cash flow is consistent, contrary to the rumors. The program is there to give new opportunities for career advancements to younger employees and efficient business management.”

Although the spokesperson denied that the program was part of company restructuring, it is seen as part of Kakao Entertainment's move to cut down on costs due to the lack of revenue streams from some of its business divisions.

Kakao Entertainment recently liquidated or sold off stocks of its subsidiaries from its media and story divisions.

In February, it sold off its shares from e-sports company Legendaries and in March, sold off shares of audio content company Soundist Entertainment. Specifics into how much the company gained from selling were not revealed.

The company also wrapped up its webtoon service “Cross Comics” in India and liquidated the Korean unit of Tapas Entertainment, a U.S.-based webtoon and web novel platform.

Kakao’s revenue in its media and story divisions each dropped 9.7 percent and 4.9 percent on year to 67.7 billion won and 228.6 billion won in the first quarter earnings this year.

BY LEE JAE-LIM [lee.jaelim@joongang.co.kr]