LG Electronics reportedly lays off 30% of its mobile staff abroad

posted by Victor H.

Sep 08, 2011, 7:03 AM

LG Electronics reportedly lays off 30% of its mobile staff abroad

LG Electronics swang back to profit in the last quarter, but it’s mobile division has continued to bleed cash and the company has reportedly now slashed workforce by 30% at its mobile offices overseas.

The move is a part of a wider reform to optimize expenses and push LG’s mobile business back to profitable. LG’s mobile unit has suffered five quarters of losses in a row. It narrowed down loss nearly twice last trimester but still ended last quarter with $52.5 million in the red.

The layoff plan includes mostly people in the marketing and purchasing resources. Some outlets which haven’t turned profitable will also be suht down, according a report by the Korea Economic Daily. LG is also said to be planning the same measures in Korea.

At the same time, though, the company has written the report off as speculation and declined to comment on rumors.

via: Reuters

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