Samsung Electronics Co Ltd has announced a major organisational realignment for the company with a new CEO and major changes to its business divisions.
According to Samsung, Geesung Choi has been appointed as the new CEO, Jay Y. Lee will take over the newly created position of chief operating officer and Ju-Hwa Yoon will be the new chief financial officer.
A new ‘company system’ has also been implemented to establish greater autonomy at the operating level. This system will mean each business unit will be managed similarly to a stand-alone company.
According to Samsung the new alignments organisationally and at an executive level will create a more focussed and responsive business structure, increase operating efficiencies and strengthen the independence of the company’s business divisions.
“Samsung has recovered well over the past year, thanks to Yoon-woo Lee’s leadership and a measured response to the global financial crisis,” said the incoming CEO Choi.
“With this forward momentum, we believe now is the time for us to make these important organisational changes to prepare for the challenges and opportunities ahead.”
Previously Samsung had 10 operating divisions organised into two principal businesses – Digital Media & Communications and Device Solutions. After the reorganisation, the two businesses will be replaced with seven independent companies under a single corporate entity and unified C-suite.