It’s not easy to run a business in financial turmoil. For the CEO of LG Electronics, the adventure stops after a fall in net profit of more than 30% in the third quarter of 2019.
The South Korean LG saw its net profit drop by more than 30% in the third quarter. A very embarrassing situation, which can only trigger quick action to prevent the whole company goes to pieces. The CEO of the company, Jo Seong-jin has been pushed to resignation, which had been renewed for three more years in March 2018. To console himself, Seong-jin can always say that he is not the only one.
Indeed, other executives were also thanked, like the financial director whose position quickly became very uncomfortable. In addition, LG has decided to appoint a new head of group strategy, while reorganizing other areas in depth.
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To explain the very bad results of the firm, we must actually look at its smartphone division which we know is not really at its best. But the situation is even more tense, as the division in question has actually accumulated losses for no less than 18 quarters in a row.
The latest results are therefore the last straw overflowing a vase already filled. For Brian Kwon, who succeeds Jo Seong-jin, the task looks more than difficult. Present for 32 years at LG, the new boss specializes in data, AI. He should define a new strategic direction for the company.