April 24, 2024

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[THE INVESTOR] LG Electronics has recently relocated some 100 employees, most of whom worked in the smartphone division, to a new team dedicated to the Internet of Things business that aims to connect all its electronics products via the internet, industry sources said on Nov. 8.

The relocation comes amid the company’s ongoing restructuring of the sluggish mobile business division that has suffered operating losses in recent quarters due to failed flagship phone launches, including the latest G5. 

Sources said LG had considered shrinking jobs at the mobile business division to cut costs overall but finally decided to relocate the staff.

The company had hinted about 15 percent of the division’s employees was subject to the restructuring program.

The IoT team is under the company’s home appliance business division whose upbeat sales are driving up the company’s profits recently despite the money-losing smartphone business.

LG plans to support wireless internet connection for all its appliances being launched from next year and to adopt other advanced technologies such as artificial intelligence and voice recognition in phases.

By Lee Ji-yoon (jylee@heraldcorp.com)