Samsung, LG tighten belts despite record earnings

Samsung Electronics and LG Electronics have stepped up efforts to reduce costs as uncertainty grows over the second-quarter sales of their home appliances, even after both firms made handsome profits during the first quarter. Despite estimating that its first-quarter operating profit surpassed 57 trillion won ($38 billion), Samsung has not scrapped its February order requiring all executives in its Device Experience division, which oversees smartphones and home appliances, to fly economy class on flights of less than 10 hours. The company is also reassigning employees in its television unit. After carrying out layoffs at its U.S. subsidiary, Samsung has taken steps to shut down its television factory in Slovakia as well. In China, rumors have circulated that Samsung will downsize its home appliance business there. The series of cost-cutting measures comes as most of the company’s operating profit has stemmed from semiconductor sales amid a slow recovery in earnings from smartphones and home appliances. The union’s ongoing threat to strike is regarded as another risk to Samsung's profiWeiter zum vollständigen Artikel bei Korea Times Weiter zum vollständigen Artikel bei Korea Times