Electronics giant Samsung Electronics has appointed Geesung Choi as its new CEO – part of a larger organisational restructure aimed at increasing operating efficiency.
Samsung also announced it will be adopting a “company system”, whereby each business unit is managed similarly to a stand-alone company, with its own President and CFO.
“Samsung has recovered well over the past year,” said Choi, the incoming CEO.
Samsung’s consolidated operating profit for the first nine months of this year reached $6.08 billion, compared to $4.08 billion for the full year 2008. These profits denote an optimistic approach to the current global financial crisis.
Speaking of the restructure Choi added: “we believe now is the time for us to make these important organizational changes to prepare for the challenges and opportunities ahead.”
Samsung has also expanded its upper management by appointing Jay Y. Lee to the newly created position of chief operating officer and Ju-Hwa Yoon as chief financial officer. Yoon-woo Lee, current vice chairman and CEO, continues only as chairman of the board of directors.
Samsung’s restructure replaces the two-business structure with seven independent companies under a single corporate entity. The firm believes that customers will now gain from a stronger focus, increased independence in decision-making, and a faster speed to market.