KT plans to cut its executive workforce by up to 27% and reduce salaries for the remainder in the wake of the sharp decline in the company's profit over the past year.
As many as 35 of the company's 130 executives will be affected by the decision to cut back on executive staff. Some will be let go, while others may be moved to different roles, the Korea Timesreported.
KT also plans to reduce executive salaries by 10%, while CEO Hwang Chang-gyu is taking a voluntary annual paycut of 30%. Hwang was selected as CEO and chairman late last year.
Stating that KT has “shifted into emergency mode,” Hwang said the company needs to allocate more resources to improving its competitiveness in its core domestic telecom business.
The company is losing market share in the fixed segment, and its position in the mobile segment is also under threat, Hwang said.
As a result of the renewed domestic focus, the company is also re-evaluating several of its overseas expansion projects, and considering various “exit strategies” from less profitable investments.
KT reported an 83.6% slump in net profit for 2013 to 181.6 billion won ($167.4 million), and swung to a fourth quarter loss of 300 billion won.
But the company is banking on its LTE network to help it recover a 30% share of the mobile market, and plans to focus more heavily on improving ARPU.
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