According to DCD, SK Telecom is cutting up to 30% of its executive workforce starting this week after a disastrous data breach and major financial losses. The company booked a net loss of $117 million last quarter while revenue dropped 12.2% to $2.8 billion. The April data breach compromised SIM-related information for SKT’s entire mobile user base. Sources say C-level executives have already submitted resignations, and the company is notifying executives targeted for retirement. The Supex Pursuit Council, SK Group’s top consultative body, will see even deeper cuts of up to 50%.
The data breach fallout
Here’s the thing about major security incidents – they don’t just hurt your reputation, they hit your bottom line hard. That $117 million quarterly loss isn’t just a number on a spreadsheet. It represents real business impact from a breach that affected every single mobile customer. When you’re dealing with SIM card data, you’re talking about some of the most sensitive information a telco handles. And now executives are paying the price with their jobs.
Even the AI division isn’t safe
What’s really interesting is that these cuts are hitting SKT’s new AI division too. The company just established its AI CIC to consolidate all AI businesses, and already about 40% of executives in that division have lost their jobs. So much for AI being the untouchable golden child. This suggests the cuts aren’t just about trimming fat – they’re a fundamental restructuring of how SKT operates across the board.
Broader implications
When a telecom giant like SKT makes cuts this deep, it sends shockwaves through the entire industry. We’re talking about one of South Korea’s biggest players essentially admitting their current structure isn’t working. The timing is brutal too – right as they’re trying to pivot toward AI and next-generation services. Basically, they’re trying to rebuild the plane while it’s crashing. And honestly, who’s to say these cuts will actually fix the underlying problems? Sometimes restructuring just creates more chaos.
technology”>A note on industrial technology
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