In According to sources, the South Korean electronics giant, LG, has slashed about 30 percent of overseas staff at its struggling mobile phone division as a part of broad-based reforms to turn the money-losing business around. The layoffs are said to have been implemented mainly in the mobile marketing and purchasing departments. Some unprofitable outlets have also been closed.
However, LG is denying the reports of these layoffs. The LG spokesman said the report was speculation and said the company did not comment on market rumours. We are always looking at opportunities to improve the performance of our mobile business but no decision has been made as to any job reductions, the LG spokesman said.
Due to cutthroat competition, LG has suffered five consecutive quarterly losses from mobile phone sales. Analysts are of the opinion that the staff cuts are a part of the managements broader strategy for overhauling the mobile business. After the reports of the staff cuts, the shares of LG dropped by more than 2.9 percent. LG still enjoys the status of worlds number three smartphone maker.
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