LG Electronics, the South Korean appliance giant, has replaced its CEO and other top leaders as net profits dropped by more than 30 percent in Q3 because of the struggling smartphone division.
LG is South Korea’s second-largest electronics firms right after Samsung and produces a wide range of products--from mobile phones to TVs and home appliances such as ACs, washers, refrigerators. CEO Jo Seong-jin, also known as the “washing machine genius”, was appointed in December 2016 and was heralded in the country for his journey to the top of an international firm--all without formally receiving a college degree.
However, the failing smartphone division announced its 18th consecutive quarter of loss last month and it has been a struggle for the company and its leaders to turn around the situation. Even though Jo’s term as Vice-Chairman had been extended for three years in March 2018, in light of the recent losses, he is being replaced as CEO by Brian Kwon.
LG also hired a new Chief Finance Officer and created a new role of Chief Strategy Officer and also replacing the presidents of the home entertainment and mobile communications units.
“We have judged we need a fast decision making process...rather than stick with management style drawn from past successes,” according to the company statement.
Kwon brings with him experience in big data, AI, and cloud technologies. He has worked with LG for more than three decades now.