LG Electronics has announced plans to move its European headquarters from London to Frankfurt. The firm’s German branch will also be moved to Frankfurt, from Dusseldorf. LG has said that all employees’ jobs are safe, if they are willing to move.
Germany was chosen because of its strong consumer market, good transport links and growth opportunities in the digital signage, solar, lighting and automotive sectors.
LG is currently looking for a suitable site, and plans to open its new offices by the end of the year.
Analyst Comment
I can think of two companies in the technology sector that has made this kind of move in recent years and in both cases, the move was designed to effectively shed staff without actually firing them or making them redundant. It’s a big move to make if you don’t want to lose a lot of staff! (BR)
