LG to Cut $2.2 Billion in Costs Feb 10, 2009

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LG Electronics Inc. said it will cut US$2.2 billion in costs and expects about a 20% decline in sales in dollar terms this year amid the spreading global recession. LG CEO Nam Yong said that the company has no immediate plans for job cuts, but may eliminate some jobs in the future as it reorganizes global production bases.

"Cutting headcount won't be easy given the local culture and LG will probably save it as the last resort for an extreme scenario," Lee said.

LG is taking steps to cut costs by about 3 trillion won (approx. $2.19 billion) this year by reducing expenses and purchasing costs. But Nam said that the the company would continue invest to enhance marketing and grow new businesses such as solar power. "The global recession is presenting a key opportunity (to grow) in emerging markets."

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