LG Electronics has reported it is “totally reviewing the course” of its decline-earning cellular business enterprise and is open to “all possibilities”.
But LG Electronics CEO Kwon Bong-seok on Wednesday instructed workforce of the company’s mobile business that their job will be safe “no matter what decision is built on the route of the business.” Kwon explained to workers via email that there is “no require to be nervous” as to regardless of what decision is manufactured.
The South Korean electronics maker added that at the time the way of the cellular small business is made a decision, it will share it with its staff promptly and transparently.
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LG, in further statements, mentioned: “the Cell Communication (MC) Firm, to make improvements to its organization composition, has for the past few of several years as a result of a variety of endeavours these kinds of as increasing creation portfolio, greater effectiveness of resource management, readjusted global production web-sites and released innovative goods.
“Nonetheless, the MC Company, since the next quarter of 2015, has posted 23 straight quarters of operating decline, with accumulated running reduction currently being all over 5 trillion gained as of the end of past yr.
“Also, level of competition is intensifying in the cell business, like in smartphones, in the global market. LG Electronics thinks it has reached a point where it should make the ideal final decision dispassionately the recent and long run competence of its mobile company.
“We are completely examining the path of the small business, open up to all opportunities.”
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Earlier, LG experienced taken care of that it planned to continue on its mobile operation and was aiming for a turnaround.
LG posted its ideal fourth quarter earnings on document in 2020, thanks to residence electronics.