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| LG Rollable Phone Driving Video Launched on the 11th at the World’s Largest IT & Home Appliance Exhibition, ‘CES 2021’ / Photo = CES2021 Video Capture |
LG Electronics is trying to fix the smartphone business, which has been losing money for 23 consecutive quarters. While the sale was being considered, LG Electronics decided to open up all possibilities and review the method of business operation.
According to LG Electronics on the 21st, Chairman Bong-Seok Kwon sent an email to the headquarters members about the operation of the MC (mobile communication) business headquarters the day before.
President Kwon emphasized, “No matter how the direction of MC’s business operations is determined, in principle, the employment of its members is maintained, so there is no need to be anxious.”
This is an official position on the recent withdrawal of MC’s business headquarters. Recently, rumors have circulated in various communities, including blind, an anonymous bulletin board for office workers, that LG Electronics will organize or sell MC’s business headquarters.
It also included specific details that 60% of the MC division’s employees moved to other divisions, 30% remained, and the remaining 10% received the desired retirement.
In order to improve the business structure of MC’s business division, LG Electronics has made great efforts in recent years, such as improving the efficiency of resource operation, adjusting global production sites, and launching innovative products in recent years. .
However, since the second quarter of 2015, MC’s business division has maintained an operating loss for 23 consecutive quarters, and the cumulative operating loss as of the end of last year is 5 trillion won.
In the global market, competition from mobile companies, including smartphones, is increasingly intense. In this regard, LG Electronics decided to review all the measures taking this situation into account.
However, it appears that there will not be a full trade recall. This is because LG Electronics is hard at work developing a new phone, such as the recent launch of a rollable phone video.
Therefore, the industry notes that, except for high-end smartphones, the reorganization will be carried out by reducing the size of the business headquarters and expanding the manufacturer’s development and production (ODM).
LG Electronics said: “We believe we have reached the point where we must make the best decision by calmly judging the current and future competitiveness of the mobile business.” .
He said: “When the direction of the business operation is determined, we plan to share it transparently and quickly with members.”
