Seoul (Korea) – Samsung, the second largest semiconductor manufacturer in the world (behind Intel), announced today it would consolidate business operations into two divisions. The new follows expectations of losses by Wall Street, the result of the weakened global economy.
Samsung’s CEO Lee Yoon-woo will retain his position, though he will assume the additional responsibility of overseeing a new Device Solution division which will combine its semiconductor and LCD businesses.
The company will also create a Digital Media and Communications division to be run by Choi Gee-sung, which will combine its mobile phone and consumer electronics businesses (printers, computers, home appliances, etc).
Samsung will announce Q4 earnings on January 23. A spokeswoman, Hwang Eun-ju, said “We needed to effectively respond to the current global recession.” Samsung may also reduce the pay of top executives by 20%.
There were 25 executive positions that were affected by the reorganization, including 14 promotions. Chang Hwang-gyu and Lee Ki-tae, who were the Chief Technology Officer and Vice Chairman for External relations respectively, both announced today they’d be leaving the company.