LG, an electronic product manufacturer, is trying to exit the smartphone business. The company is exploring all kinds of possible options to shut down the smartphone business. This includes all types of businesses including sales. According to a recent report, LG is shifting 60 percent of its existing workforce to other business units of the company or other LG affiliates. However, the future of the remaining 40 percent of the workforce is still in limbo. It is also expected that the company may continue to manufacture the flagship smartphone with the help of 40 percent of employees. Meaning the smartphone business will not be completely closed.
According to The Korean Herald report, an email has been sent to its employees on behalf of LG CEO Kwon Bong-Seok mentioning the closure of the smartphone business. The company has lost about $ 4.5 billion (about Rs 32,856 crore) in the last 5 years. In such a situation, the company is looking to exit the smartphone business. LG company is believed to be competing with South Korean domestic company Samsung. Also, other smartphone companies of LG will be competing with other Chinese companies Xiaomi, Oppo, Vivo, and OnePlus. The CEO of the LG company has not given assurance of exiting its employees from the business. However, despite this, around 60 percent of the staff has been shifted. However, the remaining 40 percent of the staff is still working on the smartphone. Last year, Dual Screen Velvet and Flip LG Wing were introduced by LG. The same LG rollable display smartphone has been introduced at the CES 2021 event. In such a situation, it is expected that LG can continue to manufacture flagship smartphones while discontinuing the business of mid-range smartphones.