Could LG Electronics Be Cutting Jobs?

By

There are conflicting news reports whether LG Electronics is reducing its workforce – and by how much – in a possible effort to turn around the company.

LG had some 10,000 mobile employees working in South Korea as of the end of June, Reuters said. But one source, the Maeil Business Newspaper, reported that LG was going to “realign” some 1,000 jobs, which represents between 10 and 15 percent of its “domestic” mobile staff. These are mainly marketing employees, Reuters said.

LG has experienced five straight quarterly losses, Reuters said. The news agency said the company’s troubles can be largely attributed to mobile phone sales and competition.

Koo Bon-joon, a member of LG's founding family, became the company’s CEO a year ago. It appears he is focusing on “high-margin smartphones, bolstering research staff in an attempt to catch up to rivals,” Reuters said.

Earlier this month, Reuters reported that LG Electronics may have cut some 30 percent of “overseas staff” at the mobile phone unit – basing it on media stories. In addition, the company was to close “some unprofitable outlets,” the Korea Economic Daily reported, according to Reuters. But Reuters later reported that LG said “the report was groundless.”

"We are always looking at opportunities to improve the performance of our mobile business but no decision has been made as to any job reductions," according to statement from LG made back then, Reuters said.

In a related story, TechZone360 reported earlier this year that LG Electronics saw its second-quarter net profits drop as the company’s sales also declined, according to media reports.

 The Associated Press reported that LG saw 108.4 billion won ($103.3 million) in the quarter which ended on June 30. That is an 87.3 percent decrease from the amount of net profit the company saw in the same time period in 2010, The AP said.

LG is ranked third in mobile phones, after Nokia and Samsung. In addition, LG is number 2 in flat screen TVs behind Samsung.


Ed Silverstein is a TechZone360 contributor. To read more of his articles, please visit his columnist page.

Edited by Rich Steeves

TechZone360 Contributor

SHARE THIS ARTICLE
Related Articles

Coding and Invention Made Fun

By: Special Guest    10/12/2018

SAM is a series of kits that integrates hardware and software with the Internet. Combining wireless building blocks composed of sensors and actors con…

Read More

Facebook Marketplace Now Leverages AI

By: Paula Bernier    10/3/2018

Artificial intelligence is changing the way businesses interact with customers. Facebook's announcement this week is just another example of how this …

Read More

Oct. 17 Webinar to Address Apache Spark Benefits, Tools

By: Paula Bernier    10/2/2018

In the upcoming webinar "Apache Spark: The New Enterprise Backbone for ETL, Batch and Real-time Streaming," industry experts will offer details on clo…

Read More

It's Black and White: Cybercriminals Are Spending 10x More Than Enterprises to Control, Disrupt and Steal

By: Cynthia S. Artin    9/26/2018

In a stunning new report by Carbon Black, "Hacking, Escalating Attacks and The Role of Threat Hunting" the company revealed that 92% of UK companies s…

Read More

6 Challenges of 5G, and the 9 Pillars of Assurance Strategy

By: Special Guest    9/17/2018

To make 5G possible, everything will change. The 5G network will involve new antennas and chipsets, new architectures, new KPIs, new vendors, cloud di…

Read More