Samsung to Trim IM Unit

There have been unconfirmed reports that Samsung is planning to reassign around 30% of the workforce in its IT and mobile business. Sources suggest that both employees and executives will be affected and will be relocated to other divisions based on performance evaluations. This would be the company’s largest reorganisation since the IM unit was created in 2012 and it is thought that company executives will be the main target of the reorganisation. There are currently seven presidents in the IM and it has been suggested that as the unit grew, the decision-making system became complex and slow.

Samsung said in October that third quarter operating profit was approximately KRW4.1 trillion ($3.8 billion), 60% lower than Q3 of last year and the fourth consecutive quarter of declines (Display Monitor Vol 21 No 40). The company said that its weaker Q3 was the result of declines in its mobile business due to intensified smartphone competition.