SK Telecom's AI Unit Initiates Voluntary Retirement Program Shortly After Launch

Just weeks after its launch, South Korean telecommunications leader SK Telecom is implementing significant changes at its new AI CIC division. The company confirmed to TechCrunch that employees within this unit are being offered a voluntary retirement program as part of a broader initiative to consolidate its various AI-focused divisions.

An SK Telecom spokesperson told TechCrunch, "In late September, SK Telecom announced the formation of the AI CIC (Company-in-Company) and confirmed that the specific organizational details would be finalized by the end of October. This voluntary retirement program is purely a support measure and is not intended as a restructuring or downsizing effort."

The spokesperson clarified that the voluntary program does not involve compulsory layoffs and is designed to assist employees whose roles, departments, or work locations might be affected. Those who choose to remain with the company could be reassigned to regional offices.

According to industry sources who spoke with TechCrunch, details of the voluntary retirement offer have been shared with staff at all levels, from entry-level to senior positions. Media reports indicate the AI unit employs approximately 1,000 people.

The spokesperson explained that the AI CIC is designed to centralize SK Telecom's various AI-related teams. "This consolidation involves eliminating overlapping roles and functions, which could naturally result in changes like role shifts, team reorganizations, or relocations," they stated.

The new division will be responsible for developing SK Telecom's personal AI agent, A. (pronounced "A-dot"), managing its AI data center operations, overseeing the enterprise AI business, and handling global AI partnerships and investments.

While severance packages are expected to differ based on an employee's seniority and role, the spokesperson told TechCrunch that the company has not set any internal targets for participation. "Since involvement is completely voluntary, it is challenging to estimate at this point how it might affect the organization overall," the spokesperson added.

DISRUPT FLASH SALE: Save up to $624 until Oct 17

Netflix, Microsoft, Box, Phia, a16z, ElevenLabs, Wayve, Hugging Face, Elad Gil, Vinod Khosla — some of the 250+ heavy hitters leading 200+ sessions designed to deliver the insights that fuel startup growth and sharpen your edge. Grab your ticket before Oct 17 to save up to $624.

DISRUPT FLASH SALE: Save up to $624 until Oct 17

Netflix, Microsoft, Box, Phia, a16z, ElevenLabs, Wayve, Hugging Face, Elad Gil, Vinod Khosla — some of the 250+ heavy hitters leading 200+ sessions designed to deliver the insights that fuel startup growth and sharpen your edge. Grab your ticket before Oct 17 to save up to $624.

This restructuring is part of SK Telecom's strategy to streamline operations and enhance efficiency, with a particular emphasis on AI. The company aims for its AI division to generate annual revenue of ₩5 trillion (approximately $3.5 billion) by 2030, expecting this growth to be driven by AI-powered B2C and B2B services and the associated infrastructure.

The telecom giant recently announced an AI infrastructure project, providing Nvidia Blackwell GPUs as a service. It also partnered with OpenAI earlier this month to develop AI data centers in southwestern Korea as part of the 'Stargate Korea' initiative.