1/16/2009 5:07:00 PM
Samsung announces reshuffle to weather the economic crisis
The Samsung Group has announced its biggest ever reshuffle and has merged its four business divisions into two, in a bid to rise above the economic crisis.
The company has also replaced or promoted 25 chief executives at its affiliate companies. Samsung’s mobile phone head and president, Choi Gee-sung, will lead the new digital communication division for the merged consumer electronics and mobile phones arm.
The Samsung Group said in a statement: ‘Younger and more innovative executives were chosen in order to overcome the present economic crisis.’
It said it would also cut the salaries of its executives by 10% to 20% to ‘share the burden amid the current economic crisis’.
Samsung’s other two divisions – semiconductors and liquid-crystal displays – will be merged into the Device Solution division, which will be headed up by Samsung Electronics vice chairman and CEO, Lee Yoon-woo.
The changes mirror those of LG, which announced earlier this month that it had restructured its business units, in a move that saw its mobile communications division’s executive vice president and ceo, Skott Ahn, promoted.