[Breaking] SK On Announces Voluntary Layoffs After 1 Trillion KRW Loss Amid EV Slump

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Breaking News (KST Feb 20, 2026, 18:00).

As EV demand continues to decline, SK On has launched voluntary layoffs and unpaid leave programs, signaling rising risks in the battery industry.

The program applies to employees with more than three years of service who joined before January 1, 2025. Those opting for voluntary retirement will receive severance compensation ranging from six to thirty months of salary, depending on tenure and age. Financial support for children’s tuition will also be partially provided.

The unpaid leave program allows up to two years for self-development. Employees pursuing job-related academic degrees (bachelor’s, master’s, or doctoral programs) will receive 50% tuition support during leave, with the remaining 50% reimbursed upon returning to work.

SK On recorded nearly 1 trillion KRW in operating losses last year amid the EV market slowdown. Analysts say reduced U.S. EV subsidies and large impairment losses following the termination of its joint venture with Ford significantly influenced the company’s strategic shift.

Although SK On is expanding into ESS (Energy Storage System) batteries to diversify its portfolio, a short-term performance rebound is considered unlikely.

Updates regarding SK Innovation’s battery division and SK On will continue.