LG brought in their A-game with the G5, but thanks to the stiff competition, they’ve witnessed a decline in sales, In case you didn’t know, LG ranked seventh in global smartphone sales with a share of less than 4 percent in the first quarter of this year.
Now, Korean times has reported that the company went through a major shake-up of Senior executives in its mobile division. The shake-up is being termed as a “program management office” where LG sent a few hundred employees from the mobile division to the company’s vehicle component division. According to LG via Korean times:
Friday’s announcement is because LG Electronics’ latest flagship G5 smartphone failed to generate sales,” LG said, adding it hopes the shake-up will give its ailing mobile business “new momentum.
Although LG claims that the move was aimed at enhancing flexibility in human resources management, but analysts say that the shake-up at the mobile division was to reduce fixed costs at a critical time when the firm needs to improve profit, after the division posted an operating loss for three-quarters in a row.
You need not be told that the Samsung Galaxy S7 series and Lenovo’s Moto G have created a huge problem for the G5 which had a good first month, but now has a poor shipment report thanks to the withering attention.