[자막뉴스] ‘The biggest crisis since its inception’ Lotte recently announced through an in-house bulletin board

Lotte Mart recently announced its hopeful retirement through an in-house bulletin board.

This is the first time since the establishment of Lotte in 1998 that it covers over 900 people in all positions, from employees to managers.

An official from Lotte Mart explained, “It is an inevitable decision due to poor performance,” and “It is a heartbreaking thing, but the company decided it after hard work.”

He also added, “According to voluntary intentions, this will be done only to those who wish to do so”

Since last year, Lotte started to drastically reduce its size and started restructuring.

Lotte Mart, which had a cumulative operating deficit of KRW 66 billion over the past three years, closed 12 stores last year, and 115 Lotte Shopping business sites such as department stores and supermarkets were also closed.

Employees at risk of workforce restructuring are preparing for group action.

[이현숙 / 마트노조 롯데마트지부 위원장 : 회사는 롯데그룹 경영실패 책임을 우리 노동조합 직원들에게 전가하고 있고 인원 감축과 인건비 비용 절감 같은 구조조정을 계속하려 합니다. 롯데그룹 계열사 민주노조들은 이 같은 문제에 대해 공동 대응해 나갈 것입니다.]

To make matters worse, customer churn to the e-commerce industry has accelerated in the aftermath of Corona 19.

Lately, Chairman Dongbin Shin was ambitious to launch an integrated online mall’Lotteon’ in April of last year, saying that he would invest 3 trillion won in e-commerce, but it is not showing its presence.

The representative of the company recently expressed appreciation for the sluggish Lotte On business.

[조춘한 / 경기과학기술대 스마트경영과 교수 : 코로나19로 인한 소비 위축과 급성장하고 있는 온라인 시장에 대응하기 위해 몸집을 가볍게 하는 움직임을 보이고 있습니다. 또한 고용과 같은 고정비를 최소화하는 등 탄력적인 경영 운영을 해 나갈 것으로 보입니다.]

Lotte’s hardship is deepening, as a’distribution powerhouse’ that must simultaneously boost employee morale and improve constitution.

Reporter: Kye Hoon-hee
Video editing: Oh Seulgi
Graphics: Hyojin Kim
Subtitle News: Yoo Ji Hye

[저작권자(c) YTN & YTN plus 무단전재 및 재배포 금지]