Samsung Electronics Names New CEO in Major Reorganization
Samsung Electronics named a new CEO on Tuesday as the company undertakes a major reorganization intended to improve its competitiveness.
The company named Geesung Choi as CEO. Choi takes over from Yoon-Woo Lee, who will become chairman of the company. Choi previously served as the head of Samsung's digital media division and once ran its telecommunications equipment unit.
In addition to Choi's appointment, Jay Lee, formerly a senior vice president, was promoted to executive vice president and will take the newly created post of chief operating officer. Ju-Hwa Yoon, formerly head of Samsung's corporate audit team, will take the role of chief financial officer.
The changes to Samsung Electronics' leadership come as the company undergoes a significant restructuring that will see its different divisions begin operating more like independent companies, each with their own president and chief financial officer. To do this, the company will change its structure, replacing 10 different divisions that operated under two business groups with a flatter structure comprised of seven independent companies, each reporting directly to the top executives.
The reorganization will see Samsung Electronics move from a structure with three senior decision-making layers to a structure with two, which should allow the companies to respond more quickly to technological advances and changes in market conditions.