Samsung’s Corporate Shakeup
We all know that Samsung has not been doing so well for a while now. They have been coming short of targets and expectations this year up to the last quarter. Though there are some sort of consoling news telling the world that Samsung has not been doing so badly, the fact is Samsung has not been performing as well as it should be. In fact it is not performing near anywhere it should be. It was doing so bad that they need to shake the company up.
The previous rumour mill suggests that the CEO of Samsung Mobile would be replaced and that there were already some candidates for the replacement. Later on we know that the current CEO will keep his job. So what happens then if they decided to keep the top guy on top? They go lower. They have decided to lay off executives in the mobile division this time around. Samsung replaced its Vice Presidents, Senior Vice Presidents, and Executive Vice Presidents of the development, marketing, and media solutions department in the mobile division. All in all they lost about 15 executives both through resignations and laying offs. With the company reshuffling also they look to revise their sales target next year onwards to meet with the revising of their product line up too.
Of course they cannot leave their management seats empty and so they appointed Pranav Mistry as their global vice president for the mobile division of Samsung. Mr. Mistry used to head Samsung’s mobile wearables division up until now. He was also one of the people behind Samsung’s Galaxy Gear, the first Android smartwatch from Samsung. They also hired Conor Pierce, former vice president of Nokia to be the vice president of mobile and IT in the UK and Ireland division. In India as well there are reports of Samsung Electronic’s head in South America HyunChil Hong will be replacing BD Park as the managing director of Samsung India. BD Park is rumoured to be moving to the position of global business head for Samsung.
Beyond that, the reshuffling also includes Samsung merging their two main United States subsidiaries together to “enhance efficiency and streamline its organisation”. Samsung Electronics America and Samsung Telecommunications America will be joining forces and will be known solely as Samsung Electronics America. Of course with that kind of restructuring, the employees would have to start moving places as well. For one, Tim Baxter; current president of and COO of Samsung mobile in America will be heading the new merged company. The good news also is that they are not laying off any of the original Samsung Electronics members; Gregory Lee will retain his job as CEO of the merged company.
We all hope that Samsung will pull through next year as well with all these reshuffling. They are going through lengths to ensure that they make it next year. As an effort to make sure that they post profits next year and they hit the roof with expectations next year they are starting of “fresh” with the Samsung Galaxy S6 scheduled next year.