By Bahk Eun-ji
Samsung Group will have a massive shakeup of its executives at the beginning of December, according to industry sources.
In a year-end reshuffle of its affiliates’ top brass, it is believed Samsung will replace many executives who have served for long periods in the Samsung Electronics’ IT and mobile (IM) divisions.
According to media and industry sources, the tech giant will trim up to 30 percent, or 6,700 employees in its IM division. About 28,000 employees work in the division, which is nearly one-third of the company. The IM division manages smartphone business, and the reshuffle is thought to be in line with moving employees to other divisions based on performance evaluations.
Industry sources say a fall in smartphone profit is behind the changes. The IM division had 1.75 trillion won operating profit in the third quarter ― as against 6.75 trillion won a year earlier.
The mobile solution center (MSC), one of three business sectors at the IM division, is expected to be hit the hardest, as it has been struggling with collapsing profits.
The IM division is separated into the mobile business, network business and the mobile solution center. The MSC deals with contents platform business. At the start of the month, Samsung said it would stop providing its e-book service, “Samsung Books,” which MSC has managed, on November 28. It also closed its video and music hub ― part of the company’s multi-media contents store ― in July. The company started providing the service two years ago to compete with Google Play and Apple’s iTunes. However, the company has since stopped offering parts of the service, mainly due to difficulties securing content. Samsung plans to collaborate with other content providers, such as Amazon and Barnes & Noble.
The MSC could be absorbed into the mobile business section, industry sources said. Offices in North America, China and Europe would also face a reshuffle, as they all had sluggish performances this year.
Samsung Group’s spokesman said the company could not confirm anything about the reshuffle until next month.