LG Electronics, already under pressure in multiple markets, is moving to further reduce costs by cutting staff, including employees over 50, sparking concerns about potential age discrimination. This follows earlier steps in Australia, where the company has already slashed marketing budgets and removed senior management.

The South Korean giant who is investing heavily in the final quarter of 2025 to boost direct sales through Black Friday promotions and a direct-to-consumer strategy, is aiming to reclaim more than 30%+ of retail margin costs.

These efforts come as its home appliance business is projected to post disappointing results in the upcoming reporting period.

LG is also facing challenges in its OLED TV segment, with traditional panel buyers shifting to RGB LED technology in 2026.

In response, the company is set to launch a voluntary redundancy program across all divisions—including Home Appliance Solution, Media Entertainment Solution, Vehicle Solution, and Eco Solutions—aimed at reducing headcount.

According to The Korean Times, the program will target employees aged 50 and older or those with underperforming records, offering standard severance pay and ongoing benefits.

The Media Entertainment Solution division, responsible for LG’s TV business, has already seen cuts after reporting an A$210.5 million loss in the last quarter.

This marks the first time since 2023 that LG Electronics has offered a voluntary retirement program company-wide.

The Visual Display division, overseeing the TV business, is also under scrutiny. For the first time since 2015, LG has initiated a management review of the division amid concerns about the future of both its TV and LG Display OEM operations.

Job cuts come after a slowdown in LG TV and home appliance sales. Analysts’ consensus for LG Electronics’ operating profit this year stands at 2.68 trillion won, down 21% from 3.42 trillion won last year. During its second-quarter earnings call, the company warned that geopolitical uncertainties are weighing on consumer sentiment, dampening expectations for a recovery in hardware demand.

In Australia, LG’s efforts to cut marketing and overhead costs reflect broader struggles with debt and declining demand for TVs and appliances, prompting a strategic shift toward B2B and direct-to-consumer sales. The company also faces competition from Chinese manufacturers and a changing global trade environment, which continue to pressure its traditional appliance and display businesses.

Analysts project that LG Electronics will report US$1.9 billion in operating profit this year, down 21.5% from the previous year, with operating margins falling to 3.04% in 2025 from 10.6% in 2020. The latest redundancy program follows limited voluntary departures among TV staff, prompting broader action across the company.

Questions are also being raised as to whether LG is giving sacked staff a copy of their “LG Life’s Good Book” which refers to LG’s “Brave Optimists”.

It was supposed to be a collection of stories from LG employees about the company’s spirit of determination and optimism.

Launched in 2024, the book was a puff piece that was supposed to showcase LG’s history and values, including “Uncompromising Customer Experience,” “Human-centered Innovation,” and “Warmth to Power a Smile”.

It was created to embody the company’s “Life’s Good” initiative, aiming to spread optimism and joy among staff.

The Australian version as we have highlighted before could have an added chapter since we last highlighted the book.

Additional Chapters:

  • 1: How the ACCC had to force LG to highlight dodgy LG solar batteries
    2: Why the Companies Managing Director told staff to destroy evidence in NZ price fixing probe
    3: The story behind claims of harassment by senior management made by form 14 year human resources veteran
    4 Why management at LG Electronics were allowed to write dodgy immigration application letters
  • 5 Why LG Electronics employ cheap labor interns