South Korea's largest telecom company just hit the reset button on its AI ambitions. SK Telecom is offering voluntary retirement packages to all 1,000 employees in its newly formed AI CIC division, just weeks after launching what was supposed to be its AI powerhouse. The move signals either rapid strategic pivoting or early turbulence in the company's $3.5 billion AI bet.
SK Telecom just dropped a bombshell on its freshly minted AI division. The South Korean telecom giant confirmed to TechCrunch that every single employee in its AI CIC (Company-in-Company) unit is being offered voluntary retirement packages, barely a month after the division's high-profile launch.
The timing couldn't be more awkward. SK Telecom unveiled AI CIC in late September as its answer to the AI gold rush, promising to centralize all its AI operations under one roof. Now, industry sources tell TechCrunch that retirement packages are being offered to staff across all levels, from junior developers to senior executives, affecting roughly 1,000 employees according to media reports.
"This special retirement program is entirely a supportive measure and is not intended as a restructuring or downsizing measure," a SK Telecom spokesperson told TechCrunch. But the optics tell a different story. When you launch an AI division with fanfare one month and offer the entire staff retirement packages the next, it raises questions about what went wrong behind the scenes.
The company insists this is all about streamlining operations, not panic-induced cuts. AI CIC was designed to eliminate overlapping roles across SK Telecom's scattered AI initiatives, bringing together the development of its personal AI agent "A." (pronounced "A-dot"), AI data center operations, enterprise AI services, and global AI partnerships under one umbrella.
"This integration involves streamlining overlapping roles and functions, which may inevitably lead to changes such as role transitions, organizational realignments, or relocations," the spokesperson explained. Employees who choose to stay will potentially face reassignment to regional offices, while those who take the voluntary packages will receive severance based on tenure and position.
The restructuring comes at a critical moment for SK Telecom's AI ambitions. The company has set aggressive targets, aiming for its AI division to generate ₩5 trillion (roughly $3.5 billion) in annual revenue by 2030. That's a massive bet on AI-driven consumer and business services, plus the infrastructure to support them.
SK Telecom isn't just talking big numbers - it's making big moves. The company recently launched Blackwell GPUs-as-a-service, positioning itself as a major player in AI infrastructure. Earlier this month, it announced a partnership with to develop AI data centers in southwestern Korea as part of the ambitious "Stargate Korea" initiative.
