Samsung Electronics plans major personnel reshuffle as chip division continues to struggle

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Samsung Electronics plans major personnel reshuffle as chip division continues to struggle

Published: 26 Nov. 2024, 11:01 Updated: 26 Nov. 2024, 17:13

JIN EUN-SOO
[email protected]

Audio report: written by reporters, read by AI

Samsung Electronics Executive Chairman Lee Jae-yong attends a second trial at the Seoul High Court on Monday. [YONHAP]

Samsung Electronics is expected to carry out a major personnel reshuffle as early as Wednesday followed by a restructuring of its businesses, according to local reports published Tuesday.

Some executives at its chip division Device Solutions (DS) and smartphone division Device eXperience (DX) were already told to leave the company as early as Monday, the reports said.

The annual year-end reshuffle generally takes place in December for Samsung Electronics but has been moved up this year, reflecting the urgency of the challenges that lie ahead of the company that spans from AI chip to smartphone businesses.

A reshuffle of the executives in its DS division is likely to be at the center of attention this year.

The whereabouts of Lee Jung-bae, head of its memory chip business; Park Yong-in, head of its system LSI division in charge of chip design; and Choi Si-young, head of its contract manufacturing business are expected to be included in the imminent reshuffle announcement.

The news comes a day after its executive chairman Lee Jae-yong urged the Seoul High Court to grant him the opportunity to focus fully on business matters in his final statement to the court.

Prosecutors once again requested a five-year prison sentence in the appeal against Lee, linked to the 2015 merger of two Samsung affiliates. A lower court had acquitted him in February, dismissing some 19 charges.

“I will do everything in my power to ensure that Samsung can, once again, become a company beloved by the people,” Lee said.

“I humbly ask for the opportunity to focus entirely on this mission.”

The chairman said that he is aware of the growing concerns regarding the future of Samsung Electronics, which he pledged to overcome once again.

“The challenge we face now is more daunting than ever,” he said. “But we will overcome these difficulties and take a step forward.”

The final verdict is set for Feb. 3.

Shares of Samsung Electronics are down more than 30 percent this year due to uncertainty surrounding the company's future despite its recent announcement of a $7 billion buyback plan.

Its shares on Tuesday closed at 58,300 won, up 0.69 percent from the previous trading day.

BY JIN EUN-SOO [[email protected]]