Prospects for confirmation of business plans and manpower reallocation at the board of directors
(Seoul = Yonhap News) Reporter Jo Sung-heum = The fate of LG Electronics’ smartphone business is expected to be finally decided today. It has been two months since the business adjustment plan was announced, and it is known that the company finally took a lead toward withdrawal.
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According to related industries on the 5th, LG Electronics is expected to hold a board of directors on this day to announce the future business plans of the MC division in charge of the smartphone business. In particular, there is constant anticipation that the company will decide to withdraw from a situation where there is no progress in the sale of the business.
Until now, LG Electronics has been in contact with Vietnam’s Vingroup and German automobile group Volkswagen, but it is reported that there has been no progress in the discussion.
It is reported that LG Electronics has already begun preparations for the relocation of the manpower of the MC business headquarters, which has approximately 3,700 people.
Prior to this, while announcing the business readjustment, LG Electronics said, “No matter how the business operation direction is determined, in principle, it plans to maintain employment.”
With the position that LG Electronics is considering internalization of patents and technologies to create synergy between mobile technology and future business, observations are raised that it will reassign its manpower to future businesses such as electrical equipment, batteries, and home appliance businesses.
If the withdrawal of the smartphone business is confirmed by the board of directors on this day, it is expected to announce a plan to relocate personnel as well as a post-support policy for existing consumers.
An official from LG Electronics said, “We will do everything we can to ensure that consumers are not harmed even if any decision is made.”
LG Electronics announced on January 20 this year that it will review all possibilities, including the sale of its mobile business. LG Electronics’ MC division recorded a loss for 23 consecutive quarters from the second quarter of 2015 to the fourth quarter of last year, and the amount of the deficit reached 5 trillion won during that time.
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2021/04/05 05:00 sent