Restructuring Ahead?

 

An increasing number of people in the industry are saying that Samsung Electronics will revamp its organizational structure soon, when it announces new presidents. Some raise the possibility that the company will not only downsize the information technology & mobile communications (IM) division but also merge the IM business with the consumer electronics (CE) division.

According to industry sources on Nov. 24, Samsung is currently considering whether to merge the IM division with the CE division.

If that happens, Samsung's three business units will become two. The CE, IM, and device solutions (DS) divisions will become just a IM+CE division with another DS division, which is the former system that the conglomerate used until March 2013.

Related to this issue, the Wall Street Journal reported that the firm is considering designating one person to be in charge of the CE+IM division, keeping the DS division unchanged. Experts are saying that Samsung's move is part of its strategy to create synergy by strengthening cooperation between business units, or redeploying the manpower and resources of the struggling smartphone business to future growth industries such as the smart home, Internet of Things (IoT), and B2B areas.

A Samsung associate commented on this issue by saying, “It is totally untrue,” adding, “We haven't made a decision on new staff appointments.”

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