Ildong Pharmaceutical Group Initiates Management Reform: "Executive Layoffs and Voluntary Retirement Implemented"

'Selection and Focus' R&D Strategy Implementation
Agreement to Return 20% of Executive Salaries

Ildong Holdings and Ildong Pharmaceutical are embarking on a high-intensity management reform effort that includes executive downsizing and voluntary retirement.

Exterior view of Ildong Pharmaceutical headquarters. [Photo by Ildong Pharmaceutical]

On the 23rd, Ildong Pharmaceutical Group announced to its internal members a reform plan that includes research cost efficiency, early licensing out (L/O) of pipelines, product restructuring, and voluntary retirement of employees.

The company explained that this reform plan aims to realize profits by preparing for the rapidly changing financial market environment, such as rising interest rates, and reorganizing the business structure. They also added that the focus is on early achievement of results in the research and development (R&D) sector.

According to the reform plan, Ildong Holdings and Ildong Pharmaceutical have agreed to reduce more than 20% of their executives and have the remaining executives return 20% of their salaries. For managerial-level employees at the deputy general manager level and above, a voluntary retirement program (ERP) will be launched, and applications for voluntary retirement will be accepted starting this week. Through this, the plan is to reorganize into a rational organization by integrating and reallocating personnel, aiming for efficient resource management and achievement of sales targets.

In the R&D sector, plans will be adjusted to increase efficiency and accelerate licensing out. Given that a considerable number of pipelines have been secured through R&D investments over recent years, the company believes that visible results can be achieved through efficient cost execution based on selection and concentration.

In the sales and marketing sector, products with weak profit structures will be eliminated, and cost burdens will be minimized through rational safety stock management.

A representative of Ildong Holdings emphasized, "This voluntary reform is to minimize financial risks and further accelerate the achievement of our vision."

This content was produced with the assistance of AI translation services.