Thursday, January 22, 2009

Samsung Electronics and Massive Shakeup

According to Digital Chosunilbo the global downtrend of economy is affecting Samsung Electronics too and the company is tackling the problem with a heavy hand.

"Samsung Electronics has conducted the biggest personnel shakeup in its history, transferring 85 percent of staff at headquarters to plants and replacing 70 percent of executives. The electronics giant on Wednesday said the move came to overcome the economic crisis by transferring large portions of headquarters' functions and organization to plants and research and development divisions.

Samsung Electronics streamlined its current six divisions into two -- the device solutions division and the digital media & communications division -- while deciding to abolish two support divisions, the business support division and the technology management division. As a result, 1,200 out of 1,400 staff at these support divisions in Seocho-dong, Seoul will move to plants and R&D centers.

An executive said the only exception to the principle 'is our decision to enhance the function of the audit team to prevent and manage the crisis, promoting the head of the team to a chief executive position.' Samsung also said it restructured business-related divisions and regional offices, while appointing executives with proven credentials and capabilities to lead them. In the process, nearly 70 percent of Samsung Electronics executives were given new assignments, and their average age dropped from 49 to 48.

Samsung said executives decided to cut their benefits and salaries by about 20 percent to overcome the crisis."

[Italics mine, perhaps execs. in Europe could do the same...]

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