Prolonged Impact of COVID-19... CJ Foodville to Implement Voluntary Retirement Program
Accepting Voluntary Retirement for One Week Starting the 20th
Approximately 80% of Annual Salary Paid... Due to COVID-19 Impact
[Asia Economy Reporter Choi Sunghye] CJ Foodville, a subsidiary of CJ Group, will implement voluntary retirement on the 20th. This move comes as the prolonged COVID-19 pandemic has severely impacted the operation of dining brands, prompting the company to seek self-rescue measures.
According to industry sources on the 20th, CJ Foodville will accept voluntary retirement applications for one week from the 20th to the 27th. The target group is approximately 400 employees in support organizations with more than five years of service. Those who opt for voluntary retirement are expected to receive about 80% of their annual salary.
However, it is known that on-site personnel such as employees working at dining brand branches or production workers will be excluded from the voluntary retirement program.
CJ Foodville recorded sales of 291.5 billion KRW in the first half of this year, a 32.7% decrease compared to the same period last year, due to the impact of COVID-19. After the re-spread of COVID-19 and the implementation of social distancing level 2.5, buffet restaurants like VIPS and Season's Table faced operational restrictions, resulting in severe sales damage.
Following the sale of Twosome Place last year, CJ Foodville sold the Jincheon plant in Chungbuk, which produced home meal replacements (HMR) for VIPS and Season's Table, to CJ CheilJedang for 20.7 billion KRW last month. In August, it sold the 'Bibigo' trademark, jointly owned with CJ CheilJedang, to CJ CheilJedang for 16.9 billion KRW. The sale of Tous Les Jours is also underway.
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A CJ Foodville official stated, "Due to the prolonged COVID-19 situation, we have decided to implement voluntary retirement as one of the self-rescue plans," adding, "It is one way to find a survival strategy."
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