LG Sacks Its Executives After LG G5 Failed To Generate Sales
LG G5 may be an interesting smartphone from the outside. However, this modular smartphone was received poorly by critics and users. With the release of Samsung's Galaxy S7 and S7 Edge, the device essentially flopped and has put the company under trouble.
While the company ranks third in US shipments, it is struggling so much it has dropped to seventh in global sales with just 4% of the market share.
Now, the company is trying its best in cutting its losses and ties with people who made the device. On Friday, LG announced that they are creating a program management office (PMO) and has replaced a few executives.
Friday's announcement is because LG Electronics' latest flagship G5 smartphone failed to generate sales.
This move has left the door open for new executives to take over. Cho Juno, the mobile division chief executive, will oversee the company's program management office. The PMO will oversee and handle the product development, marketing, manufacturing and sales of the mobile division. Also, Kim Hyung-Jeong, a Senior Vice President at LG, was appointed as the head of the company's mobile research lab.
The overseas business unit at the mobile division will take a bigger role.
The purpose of the realignment was intended to keep LG's handset business running amid challenging market situations.
Recently, LG sent a few hundred employees from its handset division to the company's vehicle component division. This is all for the mobile division to stave off a fourth consecutive quarter of operating losses.