LG Benelux deletes one in ten jobs, reports the electronics company that Wednesday its global quarterly results announced. The firing of some dozens of employees is necessary, partly because of disappointing results.
The reorganisation is not only prompted by disappointing financial results, but also to the size of the company in line with the vision. “We are the last two, three years is doubled in number of employees,” said spokeswoman Sabrina Eilers opposite Tweakers.net. “There comes a time that you need to look at how the organization needs. We focus on 3d and fit our organisation.”
Many of the fired employees had temporary contracts, but there are also fixed-price contracts terminated. LG Benelux has around two hundred people. The Korean company made Wednesday are quarterly results, and could for the first time since several quarters, again a small profit in the books credit.
The mobile division did it in spite of the release of the first dual-core smartphone, the Optimus 2X Speed is not good. The manufacturer sold almost 25 million phones, 17 percent less than a year ago. LG remains the third party in the call market, after Nokia and Samsung. LG is just for Apple: the company from Cupertino sold last quarter, 20.3 million devices. In Europe, sales of non-smartphones is severely decreased, as LG.
LG saw sales and profit of Home Entertainment, including tv’s fall, rise compared to a quarter earlier. According to the company, that is a result of the introduction of hdtv with passive 3d technology and new models with the Smart TV online platform. With these models, expected LG the next time also generate additional revenue and profitability. Also see LG opportunities on the replacement tv market in emerging economies.
The Home Entertainment division, which includes tv programs, under the fall, turned in the second quarter compared to a year earlier, less revenue, but the operating profit increased by cost reductions. So decreased the revenue of this division by 5.4% to 3,56 billion euro, while the operating loss turned around to an operating profit of eur 59.1 million.