Rumor: LG Electronics to Cut Staff in China
Sina Tech, 12/04/12
According to a knowledgeable source, employees at Korean consumer electronics maker LG Electronics' 26 nationwide mainland China offices received dismissal notices last week. It has been reported that close to 1,000 sales staff have been downsized and there are plans to cut back on managerial staff as well. LG's China office has admitted to the Beijing Times that the company is indeed undergoing cooperate restructuring, but did not reveal in detail the scale of their downsizing.
The source also stated that a manufacturer like LG should be releasing new handset models once or twice every month, but LG has not released a new product for several months, and that current LG products available on market are all older models.
Sina Tech has reported that, in order to deal with the current situation, LG's China branch would be changing CEOs, with the newly appointed CEO assuming the post within the next two weeks. According to an industry source, LG's recent downsizing was an attempt to scale back business operations and cut costs, with the new CEO to make the decision whether or not to continue the company's mobile handset business in China.
Keywords: handset vendor handset wireless LG Electronics handset model HR
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