Samsung Group on Friday announced a total of 294 executive promotions -- the lowest in six years, reflecting a sense of crisis across its key affiliates.
The tally was 20 percent down from last year’s 353 and the lowest since 2009 when Samsung reduced executive promotions to 247 following the global financial crisis.
The flagship Samsung Electronics, which has struggled to restore profits, suffered a 40 percent drop from 2013 when the company’s record earnings were reflected in the reshuffle.
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A Samsung logo is seen at the group’s headquarters in Seocho-dong, Seoul. Yonhap |
Unlike Tuesday’s president-level promotions that chose stability over change, rewards and punishments seemed more apparent among executive promotions.
Earlier this week, Samsung Electronics retained three co-CEOs, while replacing the mobile chief only.
“The total number of promotions has been reduced but 44 selected promotions were made regardless of their age and position to get in fresh blood into the organization,” the group said in a statement.
Most of the selected promotions came from Samsung Electronics’ mobile and chip business divisions.
Across affiliates, there were nine female and four foreign executives who received promotion -- down from last year’s 14 and nine, respectively.
“Samsung has made it clear that only high performers will be given rewards,” said an executive at a local conglomerate. “That principle would affect the planned reshuffles at other big companies here.”
Friday’s reshuffle reaffirmed the sense of crisis across Samsung companies.
Even though Samsung Electronics has posted improved earnings in recent quarters, the figures are still lower than those during its heyday in 2013. Analysts expect its operating profits to fall again below the 6 trillion won mark.
Despite the robust chip sales, its flagship mobile business is struggling to restore profits.
Amid the sluggish sales across affiliates, the group is expected to cut almost 20 percent of its some 2,000 executives this year.
By Lee Ji-yoon (
jylee@heraldcorp.com)
