LG Electronics is famous for it has different products such as mobile phones, television, air conditioner, and other home appliances. Howbeit, there is a report that LG Electronics is currently considering giving up the smartphone section.
LG truly struggled to compete with Samsung, Huawei, and other smartphone companies. According to the report, the company suffers income losses of USD4.5 billion (around PHP216.1 billion) in the recent five years.
The CEO Kwon Bong-Seok posted a memo about the significant change in the operation of the smartphone section. He said that regardless of any change in the smartphone business operation, there still no employment termination. However, they plan to move 60 percent of the staff in other business units or within other LG affiliates.
Furthermore, an LG official explained that it is about time for LG to make a cold judgment because the competition of mobile devices is getting fiercer. Therefore, the company will consider downsizing or dismantle its smartphone business unit.
Moreover, the statement in that memo confirmed by LG to The Verge that it was true but they do not decide yet. However, its management is very open to whatever necessary decision to solve their mobile business challenges in 2021. And they have finalized nothing as of the moment.
Source: The Verge
