LG restructure its mobile division

LG restructure its mobile division

As reported by the newspaper The Korea Herald, the South Korean company’s CEO, Cho Juno, who also heads the mobile division, sent a message to employees via e-mail in which he said that they would need to change the way of working to “move faster and easier“. He also wrote that other departments also need people from the mobile division, so they will continue to redeployment.

The financial position of the company LG is quite contradictory. Technology giant made a profit in the 1st quarter of 2016, but USR mobile segment lost money. And now, after months of growing losses, LG has taken a decision to carry out organizational changes to deal with the situation.

LG restructure its mobile division

As reported by the newspaper The Korea Herald, the South Korean company’s CEO, Cho Juno, who also heads the mobile division, sent a message to employees via e-mail in which he said that they would need to change the way of working to “move faster and easier“. He also wrote that other departments also need people from the mobile division, so they will continue to redeployment.

mobile unit carried operating losses for three consecutive quarters, including the first quarter of 2016, which saw about $ 170 million of losses. The Korea Herald added that, “department must optimize their organization and reduce the number of staff in order to more quickly respond to different market demands”.

The whole situation is very similar to what is happening in the Samsung by the end of 2014, when it became clear that the Galaxy S5 flagship failed to meet market expectations. However, in the case of the LG, it seems, some of the controls will be transferred to other business units of the company that brought profits this year.

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