LG to decide on 'direction' of mobile business, says CEO
LG Electronics has said it is "thoroughly reviewing the direction" of its loss-making mobile business and is open to "all possibilities".
Mobility
But LG Electronics CEO Kwon Bong-seok on Wednesday told employees of the company's mobile business that their jobs would be secure "no matter what decision is made on the direction of the business". Kwon told employees through email that there is "no need to be anxious" as to whatever decision is made.
The South Korean electronics maker added that once the direction of the mobile business is decided, it would share the plan with its employees quickly and transparently.
SEE: 5G smartphones: A cheat sheet (free PDF) (TechRepublic)
LG, in further statements, said: "the Mobile Communication (MC) Company, to improve its business structure, has for the past couple of years through various efforts such as improving production portfolio, increased efficiency of resource management, readjusted global production sites and launched innovative products.
"However, the MC Company, since the second quarter of 2015, has posted 23 straight quarters of operating loss, with accumulated operating loss being around 5 trillion won as of the end of last year.
"Also, competition is intensifying in the mobile business, including in smartphones, in the global market. LG Electronics believes it has reached a point where it must make the best decision dispassionately the current and future competence of its mobile business.
"We are thoroughly reviewing the direction of the business, open to all possibilities."
SEE: 10 tech predictions that could mean huge changes ahead
Previously, LG had maintained it would continue its mobile operation and was aiming for a turnaround.
LG posted its best fourth quarter earnings on record in 2020, thanks to home electronics.