Samsung likely to make major personnel reshuffle as early as this week

Samsung Electronics is expected to go through a major personnel reshuffle this week at the earliest as part of efforts to overcome its sluggish business performance, industry sources said on Tuesday.

The Korean tech giant began laying off some of the executives in charge of the chips business at its device solutions unit on Monday and will likely announce the list of new presidents as early as Wednesday, according to the sources, who spoke on condition of anonymity, reports Yonhap news agency.

Samsung Electronicsusually makes a reshuffle in early December but is expected to move up the schedule to better respond to the current crisis and prepare for the future.

The previous day, Samsung chief Lee Jae-yong said he is aware of the concerns surrounding the company’s future and his company will “overcome these challenging times even as the current situation is more difficult than ever.”

The remarks were made during the final hearing in an appellate trial for the controversial 2015 merger of two Samsung affiliates at the Seoul High Court.

Concerns have been brewing about Samsung’s future as the company posted disappointing earnings, apparently lagging behind its rivals in an artificial intelligence chip war, and also due to a negative outlook for the global semiconductor industry.

To overcome such a crisis, Samsung plans to hold a global strategy meeting in mid-December after completing its reshuffle.

Meanwhile, prosecutors have demanded a five-year prison sentence for Lee Jae-yong in an appeal against a court decision that acquitted the chairman over the controversial 2015 merger of two Samsung affiliates.

Prosecutorsalso requested a fine of 500 million won ($356,552) for Lee during the final hearing at the Seoul High Court, reports Yonhap news agency.

Lee was indicted in September 2020 on charges of stock price rigging, breach of duty and accounting fraud in the course of the controversial 2015 merger of two Samsung affiliates, Cheil Industries and Samsung C&T Corp.

The appeals court will deliver its final verdict on February 3.

(With inputs from IANS)