According to The Korea Times, after the low sales of its cell phones LG would have made the decision to close its division and focus on its home appliances
Like other companies, LG made the decision to enter the smartphone market to offer new options to users. However, due to the low sales, the company would have made the decision to close your division.
The Korea Times reported that the company decided to focus on home appliances and stop the losses they have had with mobiles.
The decision of close the division has not been officially shared with your employees however LG It has already started a transition process to relocate its workers from this area to other business units to avoid laying off staff.
According to the media before making the decision to close the division, the company had already considered other options such as selling its entire mobile unit or in parts.
The outlet even revealed that LG He had started negotiations with important names in the industry, including Vingroup and even Volkswagen. But in the end, an agreement could not be reached with which both parties were satisfied.
“As competition in the global mobile device market is increasingly fierce, it is time for LG to make a cold judgment and make the best decision. The company is considering all possible measures, including the sale, retirement and downsizing of the smartphone business. “
It is not the first time that it has been said that the company LG made the decision to close its division of smartphones, because in January several rumors arose that indicated an abandonment and even detailed that the production of mobile phones was going to be reduced.
The sources of The Korea Times highlighted that on Monday, April 5, the decision of close the division it will be officially announced at a board meeting.