Printed from http://www.electronista.com

LG: rumors of 30% mobile staff cut 'groundless'

updated 06:10 am EDT, Fri September 9, 2011

LG dismisses rumors of 30% mobile staff cuts

LG has dismissed a report that suggested it was planning to shed 30 percent of its workforce in response to poorer than expected mobile device sales. The Korea Economic Daily had claimed that to stem losses from its mobile devices division, LG was planning on reducing its global mobile marketing, purchasing resources and its domestic mobile business. LG has responded by stating the rumours are groundless.

"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," an LG spokesman told Reuters.

LG is the world's third largest mobile phone maker. However, it has recorded five consecutive quarterly losses from mobile phone sales. Part of the reason for this is that even though it holds the number three spot, most of its sales come from feature phones, which have slim margins and are aimed at the lower end of the market.

LG was criticized for a strategy that initially shied away from entering the high-end smartphone market. While it has responded to this issue positively this year, being one of the first vendors to release a dual-core smartphone, it lost a lot of momentum in 2010 with no real answer to phones being developed by Samsung and HTC.



By Electronista Staff
Post tools:

TAGS :

toggle

Comments

Login Here

Not a member of the MacNN forums? Register now for free.

toggle

Network Headlines

toggle

Most Popular

Sponsor

Recent Reviews

IDrive cloud backup and sync service

There are a lot of cloud services out there, and nearly all of them can be used for backing up key files and folders. A few dedicated ...

Asus Chromebook C300

When Chromebooks hit the market back in 2011, consumers didn't know what to do with them. The low-cost laptops, powered by Google's Ch ...

Plantronics BackBeat Pro Bluetooth headphones

Looking for a pair of headphones that can do everything a user requires is a task that can take some study. Trying to decide on in-ear ...

Sponsor

toggle

Most Commented

 
toggle

Popular News