SK On, a leading battery manufacturer in South Korea, has declared emergency management and announced comprehensive organizational reforms to address a slump and adapt to rapidly changing market conditions.
This move aims to thoroughly overhaul all necessary areas in response to the rapidly changing internal and external environments, including the recent slowdown in the electric vehicle market, and to position the company for greater success.
On July 1, SK On announced that it held a full executive meeting to implement an emergency management system. Given the geographical spread of the business, the meeting was held via video. Executives discussed the company’s current management status and plans for organizational restructuring, agreeing to take the lead in overcoming the crisis.
SK On will streamline its organization to adapt to the changed business environment. The company decided to reform all necessary areas, including business operations, decision-making processes, resource allocation, and working methods.
To achieve this, the board of directors and senior management will lead by setting an example. This is to reinforce their sense of responsibility for the crisis and publicly declare their determination to overcome it.
Decisions regarding the positions of all C-level executives, including the CEO, Chief Production Officer (CPO), and Chief Technology Officer (CTO), will be made by the board of directors. Some C-level positions, such as Chief Administrative Officer (CAO) and Chief Commercial Officer (CCO), will be eliminated, and executives with insufficient performance and roles will be reassigned as needed throughout the year.
In addition, if the company fails to turn a quarterly profit this year, executives’ salaries will be frozen the following year.
Additionally, to reduce the company’s expenditure, various welfare programs and business expenses for executives will be significantly cut. The current policies requiring executives to travel in economy class for overseas business trips and start work at 7 a.m. will continue.
