recently, the Korean company has reported nearly six consecutive years of losses, totalling up to almost USD 5 billion .
As such, LG CEO Kwon Bong-seok apparently sent out an internal memo to staff that hinted at a major, upcoming change to the company’s smartphone division, as reported by“Since the competition in the global market for mobile devices is getting fiercer, it is about time for LG to make a cold judgment and the best choice. The company is considering all possible measures, including sale, withdrawal and downsizing of the smartphone business.
At the same time, the CEO says that employees will be retained—whatever happens to the mobile division. However, this reportedly only applies to 60 percent of the headcount, although there is no word on what LG plans to do with the remaining 40 percent. It’s worth noting that Kwon, when appointed as LG CEO in 2020, assured everyone that the company’s smartphone business would be “profitable by 2021”—although this latest development might make that an empty promise.