LG Energy Solution Denies Large-Scale Layoffs at Nanjing Factory

On November 14th, several employees of LG Energy Solution posted on the social media platform Maimai (Chinese workplace community and job search platform software) that their employer, LG Energy Solution (Nanjing) Co., Ltd. (referred to as LG Energy Solution Nanjing Factory), started laying off employees in November.

In response to this, LG Energy Solution stated that the information circulating online recently regarding employee movements within the company is part of normal operational adjustments and not a large-scale layoff as rumored online.

LG Energy Solution mentioned that the purpose of this adjustment is to optimize production line arrangements to enhance core competitiveness based on changes in market conditions. The company did not disclose the specific scale of this round of employee adjustments at its Nanjing production base.

According to the termination agreement posted by these employees, it is agreed that the labor relationship will officially end on November 20th, and the company will provide a one-time N+3 economic compensation.

Public information shows that LG Energy Solution’s Nanjing factory was established in 2003, fully owned by LG Energy Solution. Currently, it has multiple factories in Nanjing Qixia New Port Development Zone and Jiangning Binjiang Development Zone, with over 10,000 employees producing consumer batteries, power batteries, energy storage batteries and other products.

In addition, LG Energy Solution signed an agreement with Jiangning Binjiang Development Zone last April to invest an additional $530 million (approximately RMB 3.832 billion) to build the LG Energy Solution Power Battery Project within the development zone.

In the third quarter of this year, LG Energy Solution had a revenue of KRW 6.87 trillion and a net profit of KRW 561 billion.

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