Korean mobile and internet operator KT (Korean Telecom) announced on December 28 that the company will have its biggest workforce reduction since 2003, cutting down the current workforce by 16% or 5,992 jobs by year-end 2009, through a voluntary early retirement program, Yonhap News reported on December 28. Under the layoff plan, to become effective on December 31, 2009, KT aims to reduce its annual labor costs by approximately 460 billion Won (US$395.2 million; US$1 = 1163.9 Won).

 

This plan will apply to employees who have worked at KT for over 15 years and applied for the retirement program. Employees who meet the requirement and apply for retirement were asked to apply for the program by December 24. As of the end of September 2009, KT had 37,026 employees. This retirement plan, however, is anticipated to reduce the company's operating profit to 900 billion Won (US$2.28 billion) in 2009, according to the same source.

 

Meanwhile, KT announced on December 28 that the company will acquire a 25% stake in Omnitel China - a Chinese subsidiary of Korea-based mobile content developer Omnitel - with an aim to tap the lucrative Chinese telecom market, Xihua News reported on December 28. Financial details of the investment, however, were not yet disclosed.