Homeplus launches voluntary redundancy program, citing unsustainable fixed costs

Homeplus said Wednesday it would launch a voluntary redundancy program to normalize operations and improve business viability.

The supermarket chain has been closing underperforming stores as part of its court receivership process, cutting its store count from 126 before the proceedings began to 67 — roughly half. As a result, about 50 percent of its employees are currently on paid leave.

"Fixed costs are far too high relative to sales, making voluntary redundancies unavoidable in order to normalize operations and improve business viability," Homeplus said.

Applications will be accepted from Wednesday through Oct. 22, with departures set for Oct. 31. Severance pay will be disbursed on Nov. 14, together with any outstanding wages and chuseok bonuses.

No target headcount has been set for the program, which will proceed within the limits of available operating funds. Depending on circumstances, the application window may close early or be canceled altogether.

"We will do our utmost to improve business viability through structural reform and accelerate the normalization of operations so that we can achieve a full recovery as soon as possible," Homeplus said.