Samsung sees smaller than expected staff shuffle

Samsung sees smaller than expected staff shuffle

01 DEC 2014

Samsung shelved a previously-reported staff re-organisation which would have seen a new head appointed for its mobile business, according to The Wall Street Journal.

According to speculation last week, Jong-Kyun Shin, who heads the mobile unit, was set to be replaced by Boo-Keun Yoon, who would add the business to his existing home appliance and television responsibilities.

But the paper now said that Shin and Yoon will both maintain their current portfolios, as will Kwon Oh-hyun, who heads Samsung’s component unit. Indeed, it was noted that the annual reshuffle was fairly small, perhaps reflecting the fact that group chairman Lee Kun-hee is currently hospitalised.

The transition of the mobile portfolio to the home appliances head was seen as a way of both pruning the management ranks and promoting convergence opportunities relating to the connected home.

But there is also the argument that Samsung needs a management team dedicated to the mobile business which, in addition to being big, has seen a number of challenges in recent months.

When the company announced weak Q3 numbers, it citied issues such as price erosion due to fierce competition. Samsung is looking to drastically trim its number of smartphone models, in order to reduce costs.

While Shin may have escaped the axe for now, it is likely that Samsung will be looking for signs of a reinvigorated performance from the mobile unit sooner, rather than later. And with the bumper Christmas holiday sales period coming up, it is an important time for the company.

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Steve Costello

Steve works across all of Mobile World Live’s channels and played a lead role in the launch and ongoing success of our apps and devices services. He has been a journalist...More

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