Samsung Electronics is consolidating its four key business divisions into a components business and a branded products business as it tries to cope with the global economic crisis.
Under a reorganization announced on Friday, Samsung Electronics is merging its LCD (liquid crystal display) and semiconductor business into one business unit called Device Solution Business.
It is also merging its digital media and its telecommunications business into one business unit, called Digital Media & Communications Business. The unit will handle Samsung Electronics' branded products such as mobile phone, televisions, and other digital media products, said Reuben Staines, a spokesman for the company.
The moves are designed to streamline the business and get more efficiencies in the company, given the current global environment, Staines added.
Samsung Electronics' net profit fell 44 percent in the third quarter of 2008 from the same period in 2007, even as sales grew by 15 percent. The company is scheduled to announce its fourth quarter earnings next Friday.
The new Device Solution Business will be headed by Yoon-woo Lee who also continues as the CEO and Vice Chairman of the company. Geesung Choi, who was President of the Telecommunications Networks Business, will now be President and Head of the new Digital Media & Communications Business.