Samsung set for major executive reshuffle as profits fall

Samsung is set to undergo a major reshuffle of its executive positions if industry sources prove to be accurate.

The skakeup is expected to begin next month and will see a number of long-held positions in the firm’s IT and mobile (IM) sectors replaced.

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KoreaTimes is reporting that up to 30 per cent, or 6,700 members of staff from the division, are set to go as a result of falling smartphone profits. The IM branch makes up approximately one-third of the company and manages the company’s entire smartphone line.

While the division recorded an operating profit of 6.75 trillion won (£3.85 billion) in the third quarter of 2013, this fell to just 1.75 trillion won (£1 billion) across the same period this year.

Within the IM sector, the mobile solution centre (MSC) is expected to face the biggest jobs cuts, as its profit figures have been falling sharply in recent times. The IM division is made up of three sectors, mobile business, network business and the mobile solution centre.

Samsung has also been cutting costs across other business areas as it looks to consolidate its position in the smartphone market in the face of increased competition from the likes of Xiaomi and Lenovo.

The Korean firm announced that its ebooks service, Samsung Books, is set to cease operating this month, while its video and music hub was shut down back in July.

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Samsung has refused to comment on speculation regarding the reshuffle, but sources indicate that changes are also likely to occur at the company’s North American, Chinese and European offices early next year.