This move comes after the LG G5 reportedly “failed to generate sales”
LG has reportedly replaced some of its executives in its mobile division and created a Program Management Office(PMO) within the it. According to the Korea Times, the reason for this shakeup is because the company’s latest flagship, the LG G5, “failed to generate sales.” As per the report, Cho Juno, the Mobiles Chief, will oversee the PMO, while former head of the Research Lab, Oh Hyung-hoon, will be its chief.
Market insiders told the publication that the job cuts were to reduce fixed costs at a time when LG needs to increase profit. This comes after the company’s mobile division posted an operating loss for three quarters in a row. “The smartphone marketplace is expected to be increasingly competitive in 2016 due to anticipated premium models from competitors and further price competition within the mass tier space,” LG said.
The company launched its modular flagship, the LG G5 a few months back and hoped that the phone would be able to improve profitability in the company’s mobile unit. The report notes that while it looked like it would meet expectations in the first few weeks of launch, the initial attention the device withered and shipments continued to drop.
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Shrey Pacheco
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