CJ CheilJedang is making "profitability" its top priority and reorganizing its business structure accordingly. The company plans to reshape its portfolio around future growth and stable-earnings businesses, moving beyond its existing food and bio framework.
CJ CheilJedang announced on the 1st that it will reorganize its business structure into three divisions: lifestyle food, technology materials, and core materials. The key lies in reclassifying its businesses by growth potential and profitability. The company decided to boldly wind down marginal businesses with low growth and profitability in each division. In line with the reorganization, it will realign its workforce and business composition, and subsequently make necessary investments in stages.
First, the lifestyle food division, which will carry on the existing food business, will lead the overseas growth of K-food, spearheaded by global strategic products (GSP) such as dumplings, chicken, sauces, and kimchi centered on Bibigo. The existing bio business has been reorganized into the technology materials division, a future growth business, and the core materials division, a cash-generating business. The technology materials division will handle new market development and securing future growth engines, centered on high-value-added materials such as nucleic acids, TnR (TasteNrich), and eco-friendly plastic material (PHA). The core materials division will build a stable earnings base by bundling feed amino acids such as lysine and tryptophan with raw materials such as sugar, flour, cooking oil, oligosaccharides, and allulose.
Each division has been placed under a specialized head at the forefront. Lifestyle food will be led by Gregory Yep, who spent more than 30 years leading R&D and business innovation in the global food and nutrition sector. Technology materials will be concurrently headed by CJ CheilJedang CEO Yoon Seok-hwan, who has led bio technology innovation. Core materials will be overseen by Kim Chan-ho, head of the strategic support division, who led the turnaround to profitability and global business expansion during his tenure as CEO of CJ Foodville.
This reorganization comes after calls from inside and outside the company for sweeping renewal and structural improvement following CJ CheilJedang's net loss of 417 billion won last year. Accordingly, in February this year, CEO Yoon stated in a message to all employees titled "There Is No Comfortable Tomorrow for Us" that he would pursue comprehensive structural improvement, including business structure optimization, financial structure improvement, and organizational culture innovation.
A CJ CheilJedang official said, "Amid a continuing global economic slowdown and uncertainty, we are preemptively changing our business structure out of a sense of crisis that our competitiveness could weaken under the current system."
Each division has been placed under a specialized head at the forefront. Lifestyle food will be led by Gregory Yep, who spent more than 30 years leading R&D and business innovation in the global food and nutrition sector. Technology materials will be concurrently headed by CJ CheilJedang CEO Yoon Seok-hwan, who has led bio technology innovation. Core materials will be overseen by Kim Chan-ho, head of the strategic support division, who led the turnaround to profitability and global business expansion during his tenure as CEO of CJ Foodville.
This reorganization comes after calls from inside and outside the company for sweeping renewal and structural improvement following CJ CheilJedang's net loss of 417 billion won last year. Accordingly, in February this year, CEO Yoon stated in a message to all employees titled "There Is No Comfortable Tomorrow for Us" that he would pursue comprehensive structural improvement, including business structure optimization, financial structure improvement, and organizational culture innovation.
A CJ CheilJedang official said, "Amid a continuing global economic slowdown and uncertainty, we are preemptively changing our business structure out of a sense of crisis that our competitiveness could weaken under the current system."
