Samsung has announced that the current recession has forced the company to reorganise its current business structure and cut costs.
You may, in fact, not realise just how large Samung is – in broad terms. It is the world's biggest manufacturer of memory chips, liquid crystal displays and flat-screen televisions. It also ranks second behind Finland's Nokia in mobile phones.
As such, according to the Yahoo website, Samsung plans to launch a Digital Media and Communications division bringing together, under one umbrella, televisions, mobile phones and other consumer electronics such as printers, computers and home appliances, according to Samsung spokesman James Chung.
Unlike Sony Ericsson, however, Samsung is still in profit, even though that profit did fall by 44%. The company has decided to cut the pay for top executives by 20%.
"We needed to effectively respond to the current global recession," Samsung spokeswoman Hwang Eun-ju said to Yahoo, regarding the reason for the changes.
Click to read the Yahoo story