By Kim Yoo-chul
Samsung is set to have wider-than-expected reshuffle on executives and business units of its affiliates focusing on the conglomerate’s technology units for leaner business structure, according to officials, Wednesday.
“Visible changes are expected in a year end reshuffle of executives and business units. The number of executives will be cut and those who will get either executive-title or senior executive-title may be minimized,” said an official.
Samsung will announce the results of reshuffle of top brass in the first week of next month, chief communications officer at Samsung Future Strategy Office Lee Joon told reporters, recently.
Last year, Samsung has chosen “stability” over “changes” in the year end reshuffle as it promoted three as presidents and 353 as executives, which is the lowest over the past few years.
This was, according to Samsung officials, because of its chairman Lee Kun-hee’s inability to proceed, due to heart surgery.
Tensions are running high inside Samsung as the country’s most-influential industrial titan is experiencing changes in business structures.
Led by Samsung heir-apparent Lee Jae-yong, a vice chairman at Samsung Electronics, the company has sold unprofitable businesses and it plans to cut fixed costs as Samsung’s mainstream businesses are increasingly being challenged amid weak demand and the rapid rise of cheap Chinese competitors.
“A process to relocate employees is also a part of group-wide efforts for better efficiency. Some researchers will be moved to a newly-opened building in Yangjae, southern Seoul,” said another official.
In this year’s year end organizational overhaul, Samsung is expected to combine unprofitable units and affiliates and to offer more authority for employees who are experienced and have good knowledge of English.
Also, another key point is the destiny of three co-CEOs at Samsung Electronics ― home appliances chief Yoon Boo-keun, mobile chief Shin Jong-kyun and vice chairman Kwon Oh-hyun. Yoon is widely expected to be promoted as the company vice chairman.
“There have been talks that Samsung will cut the number of executives by more than 30 percent. The one thing for sure is that more Samsung executives will leave the company,” said another official by telephone.
Samsung Heavy and Samsung Engineering will be restructured both in executive numbers and business size due to the continued dismal performance of the two units.
Samsung Heavy is receiving a voluntary retirement program and the two units may be combined.
“The role of the Samsung Future Strategy Office, a control tower of the conglomerate, will be reshaped as vice chairman Lee is focusing more on field work, not back-office functions,” said the official.