Just recently, Samsung announced that it will be
undergoing a major internal operation that will effectively split the company
into two divisions. In addition, a
variety of key roles within the management structure will be changed once again.
Nevertheless, both adjustment practices have been presented in an effort to stay afloat during the economic downturn, just a few days before Samsung announces its fourth quarter earnings on the 23rd of this month.
Samsung's first division will be a 'Digital Media and Communications' group headed by Choi Gee-Sung, current president of the company's cell phone unit. Moreover, the group will focus on mobile phones, televisions, laptops, printers, home appliances and other consumer electronics.
On the other hand, Samsung's current CEO Lee Yoon-woo will head a 'Device Solution' group that will focus on component, semiconductor and LCD manufacturing and production.
In Q3 2008, the company posted a 44% drop compared to the same quarter one year prior. In response, Samsung spokeswoman Hwang Eun-ju explains, "We needed to effectively respond to the current global recession." However, the irony begins with the fact that prior to this plan, the company's ex-chairman Lee Kun-hee resigned after being indicted for evading $133 million in taxes.