'Windsor' Diageo to Offer Voluntary Retirement by End of This Month... 10 Months After Last Year

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[Asia Economy Reporter Song Seung-yoon] Diageo Korea, the nation's top whiskey company, will conduct voluntary retirement again this year following last year.

According to industry sources on the 20th, Diageo Korea is accepting voluntary retirement applications from regular employees who joined before June last year until the 29th of this month. About half of the approximately 280 employees, including those from the former Windsor business division, are expected to be included. Those transferring to the newly established corporation handling brands such as Johnnie Walker and Guinness are excluded. The eligible employees will leave the company by the 31st of next month.

Earlier, Diageo Korea decided to sell the Windsor whiskey brand, including the W series, to the domestic private equity group consortium 'Bayside Private Equity - Metis Private Equity.' Accordingly, the company is accepting voluntary retirement applications from employees whose affiliation is expected to change. WI, an intellectual property specialist company, is investing as a major LP in the Bayside PE's Highland Equity No.1 Private Equity Fund (PEF), which was established for acquiring the Windsor brand. The sale is planned to be completed by July.

Diageo Korea plans to operate an ERP (Early Retirement Program). The program will provide voluntary retirement pay up to a maximum of 36 months based on individual years of service, separate from severance pay, and will include support for entrepreneurship related to Diageo Korea after retirement. Bayside PE is known to plan to retain all employees who wish to remain with the Windsor brand by succeeding their employment.

Diageo Korea conducted a voluntary retirement program once three years ago in July last year since 2018. At that time, employees with more than 15 years of service were eligible, and consolation payments were provided in addition to severance pay. It was largely a restructuring measure amid a downturn in the entertainment market and management difficulties. Diageo Korea explained that this voluntary retirement is being conducted as part of structural changes due to the brand sale.

A Diageo Korea official said, "Even if employment is succeeded, the affiliated corporation changes, so some employees may not want this, and others may have different plans. Considering this situation, we decided to conduct voluntary retirement, and it does not have a significant nature of workforce reduction or restructuring."

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