Looks to fight back amid the economic turmoil.
Turning up right at the we’re-only-thinking-about-the-weekend hours of late Friday afternoon emerged some rather big news from Samsung…
The Korean mega-corp has announced it will be undergoing a major restricting operation to split the company into two divisions. The first is a ‘Digital Media and Communications’ division headed up by Choi Gee-Sung which will unite televisions, mobile phones, laptops, printers and other consumer tech and home appliances (so it’s the part we’re interested in). The second is a ‘Device Solution’ division which will be lead by current CEO Lee Yoon-woo and focus on the component, semiconductor and LCD panel production business (which is still quite interesting).
“We needed to effectively respond to the current global recession,” explained Samsung spokeswoman Hwang Eun-ju. She also revealed Samsung’s top executives will be taking 20 per cent pay cuts.
The move comes just a week before Samsung announces its fourth quarter earnings and – while proactive – doesn’t bode well. It also follows a third quarter which saw a 44 per cent fall in net profit when compared against the same period in 2007. In addition, the move is the first major restructure since then Samsung chairman Lee Kun-hee was indicted for tax evasion and given a suspended prison sentence.
As we’ve said before: 2009 is going to be an ”interesting” year.