LG once again said to be cutting jobs in its mobile division; marketing personnel to get pink slips
As we recently reported, Korean manufacturer LG had denied reports that it was making layoffs in its mobile division. But according to Reuters, the layoffs are back on and the pink slips are going to flow in the company's mobile division. An unnamed industry official told The Maeil Business Newspaper that LG would cut 1,000 jobs, or 10 to 15% of its domestic head count in the mobile division. Most of the cuts will be in the marketing department.
According to the source, LG is making up for the cuts in marketing by adding jobs in the research department. While LG refused to comment on the story, Koo Bon-joon, a member of LG's founding family, had taken over as the company's CEO a year ago. In that time, he has been eliminating unprofitable phone models and has LG focused on high- profit smartphones. He also has boosted the payroll in research to help LG catch up with fellow Korean manufacturer Samsung, Apple, and Taiwan's HTC.
LG has been under pressure after reporting 5 consecutive quarters of red ink and the tough competition in the smartphone market might lead to LG having to tighten its belt a little more if things don't turn around soon. The company still has a thriving mobile parts business and has recently regained its status as lead panel producer for the Apple iPad 2 after earlier issues with the quality of its production.
source: Reuters
source: Reuters
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