According to people with knowledge of the situation, Samsung Electronics Co. is considering its first major management restructure. The reorganisation plans are part of the company attempts to bring a new life to its fortunes after it faced difficulties over the year, which seriously affected not only its profitability, but also its stock price and market share.
Chung Chang Won, an analyst at Nomura Holdings Inc., commented on the situation for Bloomberg: “A large-scale leadership change at the mobile division may come. Samsung is a very performance-oriented company, so the top leadership who misstepped in the mobile business will have to pay the price.”
People familiar with the matter reported that J.K. Shin, the co-Chief Executive and head of the companys mobile unit, could be moved out of the role in the mobile division. One of the sources also said this could mean Mr. Shin is to lose his position as a co-Chief Executive Officer.
In addition, the sources revealed that another co-CEO, B.K. Yoon, who manages the home-appliance and television business of Samsung, could be made responsible for the mobile unit as well.
The reorganisation at the South-Korean smartphone giant comes at a time when the company has been pressed by the increasing competition coming from smaller low-cost China-based competitors, which has affected the companys smartphone margins. On the other hand, the large management shifts are considered able to provide Mr. Lee, the son of Samsungs manager Lee Kun-hee, with the opportunity to take the initiative and make more serious decisions related to the companys future.
The management shake-ups are considered the latest twist at the company, which covers areas from appliances and insurance to military weapons.
Kim Young-woo, an analyst at HMC Securities, also commented on the situation in an interview cited by the Financial Times: “A large-scale shake-up is expected this year, given the company’s falling earnings from most businesses. The mobile head is likely to be moved out of his role, given Samsung’s performance-oriented personnel principles.”
Samsung Electronics Co. was down 0.25% to close at KRW 1 220 000 per share today. The company is valued at KRW 202 090.00 billion.
TradingPedia.com is a financial media specialized in providing daily news and education covering Forex, equities and commodities. Our academies for traders cover 
