SK On has declared an emergency management system. To streamline operations and achieve a profit turnaround, all executives will have their salaries frozen. This decision is aimed at boldly transforming all necessary areas in response to the rapidly changing domestic and international environments, particularly the slowdown in the electric vehicle market.
On the morning of the 1st, SK On held an executive meeting and announced the establishment of the emergency management system. The meeting was conducted via video conference to consider the situation of production sites distributed across different regions. Executives shared the company’s management status and organizational restructuring direction at this meeting, uniting in a commitment to lead by example in overcoming the crisis.
SK On plans to reflect the changed management environment and streamline its organization. It has decided to boldly change all areas that require transformation, from operational domains and procedures to resource allocation and working methods.
Starting with the management team, there is a commitment to lead by example. This is to strengthen accountability in the face of the crisis and to publicly declare the determination to overcome it. The CEO, along with the Chief Production Officer (CPO), Chief Technology Officer (CTO), and all C-level executives will have their positions delegated to the board. Some C-level positions, including the Chief Administrative Officer (CAO) and Chief Commercial Officer (CCO), will be abolished, and any executives underperforming in their roles may have their appointments changed throughout the year.
Additionally, if the company fails to achieve a quarterly profit turnaround this year, the executives’ salaries for the following year will be frozen. Various benefits and operational expenses for executives will also be significantly reduced. The current mandate to travel in economy class for overseas business trips, along with arrival at work by 7 AM, will continue as well.
However, to maintain core competitiveness, SK On is committed to supporting research and development investments as much as possible. It will also separate and strengthen the sales organization by region to enhance responsiveness to client needs.
Furthermore, all members will strive for a company culture that is more focused on the basics. While maintaining the flexible working hours policy where everyone can decide their own commute times, there will be an emphasis on concentrating on work during those hours, and a principle of in-office work rather than remote work will be adopted for efficient decision making.
After the meeting, CEO Lee Seok-hee sent a message to all employees stating, “The executives and leaders will take on the heavy responsibility of the current crisis and lead by example,” and added, “Let us all, including the management, join forces in our individual roles with the resolve that ‘there is no further retreat,’ to achieve the highest performance possible.”
CEO Lee stated, “This current crisis is rather an opportunity to solidify our foundation as a true global manufacturing company,” and emphasized, “If we all strive with a spirit of self-reliance and diligent effort, we can achieve even greater results.”
Lee Sang-jin daedusj@autodiary.kr