SK Telecom AI Unit Offers Voluntary Retirement Program

SK Telecom Restructures New AI Division

SK Telecom, a leading South Korean telecommunications company, is implementing significant changes within its recently established AI division, known as AI CIC. These adjustments are occurring only weeks following the unit’s initial launch.

The company has confirmed to TechCrunch that staff members within the AI CIC are being presented with a voluntary retirement program. This initiative is part of a larger strategy to consolidate the company’s diverse AI-focused divisions.

Voluntary Program Details

According to a SK Telecom spokesperson, the launch of the AI CIC in late September was accompanied by an announcement of forthcoming organizational restructuring, to be finalized by the end of October.

The spokesperson emphasized that this voluntary retirement program is designed as a supportive measure for employees, and is not a restructuring or downsizing effort.

Participation in the program is entirely voluntary, and will not involve any forced layoffs. It aims to assist employees whose roles, organizational structures, or work locations may undergo modifications.

Employees choosing to remain with SK Telecom may be reassigned to positions in regional offices.

Program Scope and Impact

Industry sources have indicated that details of the voluntary retirement program have been shared with employees at all career stages, encompassing both junior and senior personnel.

Media reports suggest the AI unit currently employs approximately 1,000 individuals.

The primary goal of the AI CIC is to centralize SK Telecom’s various AI-related units under a single organizational structure.

This integration will involve streamlining redundant roles and functions, potentially resulting in role transitions, organizational realignments, or relocations.

AI CIC’s Responsibilities

The newly formed division will be responsible for the development of SK Telecom’s personal AI agent, named A. (pronounced “A-dot”).

It will also oversee the company’s AI data center operations, its enterprise AI business, and its global AI partnerships and investments.

Severance and Future Outlook

While severance packages are anticipated to vary based on employee tenure and position, the SK Telecom spokesperson stated that no specific internal targets have been established.

Due to the voluntary nature of the program, predicting the overall impact on the organization remains difficult at this time.

This restructuring aligns with SK Telecom’s broader objective to streamline operations and enhance efficiency, with a particular emphasis on artificial intelligence.

The company projects that the AI division will generate annual revenue of ₩5 trillion (approximately $3.5 billion) by 2030.

Growth is expected to be driven by AI-powered B2C and B2B services, as well as supporting infrastructure.

Recent initiatives include the launch of an AI infrastructure offering, providing Nvidia Blackwell GPUs-as-a-service, and a partnership with OpenAI to develop AI data centers in southwestern Korea under the “Stargate Korea” initiative.