Lotte On launches voluntary retirement program to boost competitiveness

Lotte Shopping's e-commerce platform Lotte On announced Monday it is launching a voluntary retirement program.

Lotte On notified its employees of the voluntary retirement application Monday. The program is open to employees with three or more years of service, and applications are accepted through the end of June.

Employees who receive approval following an internal review will receive a lump-sum payment of up to 12 months' salary upon departure. The company will also provide 10 million won (about $6,580) per college-age child in tuition support.

"We decided to carry out the voluntary retirement program to build a more competitive organization through workforce restructuring amid the rapidly changing e-commerce market environment," a Lotte On official said.

Lotte On launched in 2020 as the integrated online shopping mall for Lotte Group's retail business. In the first quarter of this year, it posted sales of 27.2 billion won and an operating loss of 5.8 billion won. Sales edged down slightly, while the operating loss narrowed by 2.7 billion won from the same period a year earlier. The company has been restructuring its business around fashion and beauty categories as it works to improve profitability.