Seoul, S. Korea -
said Tuesday it has implemented a corporate restructuring that will see the elimination of one of its five business operations next month in a bid to shore up its competitive strength.
The company said it will dismantle its business solutions unit as part of the restructuring effort to reverse a 99 percent decline in third-quarter net profit.
The business solutions division had produced flat-screen display products for corporate customers and automakers.
Flat-screen monitors, which had been part of the division, will be moved into the remaining home entertainment division.
The four remaining business divisions include home appliance, air-conditioning and energy solutions, home entertainment, and mobile communications.
Also as part of the move, the former air conditioning division was expanded to include air conditioning and energy solutions to reflect newly emerging business opportunities in LEDs, solar-panel systems and other so-called "green" technologies.
Globally, LG created two teams to handle overall management and global marketing. These will report to directly to chief executive Koo Bon-joon, a member of the founding family, who succeeded Nam Yong in October, following significant losses in the mobile phone sector.
The global restructuring is the first major step taken by Bon-joon since being named CEO.
LG also said it would cut its contracts with five non-Korean C-suite officials.
In the U.S., as reported earlier today, LG
was named new the president of LG Electronics USA. The 28-year LG veteran replaces James Shad, who is leaving the company next month, after two years with organization.
Park said the reorganization here will result in the formation of two separate U.S. sales and operations organizations for the home entertainment and home appliance business units.
has been named head of the LGEUS home entertainment business unit. He had been senior VP of sales since May 2010.
He joined LG in September 2009 as senior VP/U.S. go-to-market operations.
Sam Kim was named head of the LGEUS home appliance business unit. Kim joined LG in 1988 and has extensive North American experience including serving as head of the U.S. OEM appliance division, as well as key product management positions in the U.S. and Canada.
Since January, Kim has served as North American regional business leader for refrigerator products.