LG Electronics confirmed to the Global Times Wednesday that the company's mobile phone operation in China is facing "inevitable personnel changes" due to streamlined sales channels, at a time when the company's cell phone sales are in decline in the country.
According to an anonymous insider from LG, the company's mobile phone operation in China has experienced two large-scale layoffs since last winter, resulting in 75 percent of staff leaving their positions.
"The layoff is still going on, as LG mobile phones have not been selling well," he told the Global Times via telephone, adding that the mobile phone sales department has been severely hit.
Details of the staff adjustment will be released soon, said the company in an official announcement sent to the Global Times via e-mail Wednesday.
This year's annual sales of LG phones are estimated in the tens of thousands of units, down from 4 million units in 2011 and 8 million in 2010, Wang Yanhui, head of Shanghai-based Mobile China Alliance, told the Global Times Wednesday.
"In order to survive in the domestic market, mobile phone makers have to provide either high-end products like Apple's iPhone, or fairly cheap ones like domestic brands mainly sold below 2,500 yuan ($401)," said Wang, adding that the majority of Chinese consumers prefer the medium- and low-end mobile phones due to price concerns.
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