The Kakao branch of the Korean Chemical, Textile & Food Workers’ Union has expressed their opposition to the current employment adjustment process at XLGAMES. They are urging parent companies Kakao and Kakao Games to come up with solutions to address the situation.
The Kakao union has raised concerns about the recurring job insecurity and the push for voluntary retirement at XLGAMES. They are insisting that Kakao and Kakao Games, being the primary employers, must come up with responsible solutions promptly.
According to the union, XLGAMES is currently in the process of voluntary retirement and reassignment. Despite failed labor-management negotiations, the company is proceeding with restructuring unilaterally, disregarding the existing labor-management agreement focused on job security.
The union has criticized the company for placing the burden of business failures and management decisions on the workers, repeatedly restructuring under the guise of ‘workforce efficiency.’
XLGAMES, a subsidiary of Kakao Games, operates within the business strategy and investment framework of the Kakao community. The union has stressed that Kakao needs to stop evading responsibility and instead come up with group-wide measures.
The union has stated, “The gaming industry is under pressure to enhance management efficiency due to recent poor performance of new titles and increasing development costs. Kakao Games is also facing the need for cost-cutting due to heightened competition in the mobile market and declining revenue from major lineups.” They added, “The restructuring at XLGAMES is a direct result of these evolving market conditions.”
The union’s stance is clear: they oppose layoffs and artificial restructuring that shifts the blame for poor performance onto the workers. They emphasize that for the company to ensure a sustainable future, they must first rebuild trust regarding the job security of their members.
At XLGAMES, the union members have voted in favor of industrial action, and the election of an employee representative is in progress. The union sees the company’s move to elect an employee representative as a precursor to layoffs. They have warned that if the company proceeds with forced restructuring beyond voluntary retirement, such as actual layoffs, they will respond with all available means, including a strike.
The union argues that treating people as costs to be cut will not lead to quality games or a sustainable community. They demand that Kakao and Kakao Games engage in dialogue as the primary employers and establish fundamental measures to ensure job security.
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