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| LG Electronics to cut expenses by $2.2 bn this year |
| Press Trust of India / Seoul/New Delhi Feb 09, 2009, 19:43 IST |
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South Korean conglomerate LG Electronics today said it plans to bring down cost by as much as three trillion South Korea won (about $2.17 billion) this year.
"LG is targeting a reduction in expenses of KRW three trillion in 2009. This company-wide initiative, which includes headquarters and all 82 subsidiaries around the world, also applies to manufacturing and indirect costs," the firm said in a statement.
However, the company would continue to invest in solar power and commercial air conditioners businesses, among others.
Commenting on the move, LG's Chief Executive Officer Yong Nam said, "Every company - not just LG - has been affected negatively by the economic downturn. Poor performance of many global firms in the last quarter of 2008 was a wake-up call that we needed to take drastic actions, not just safe ones."
According to the statement, the firm would continue to invest in "future growth engines" like solar power, commercial air conditioners and business (B2B) solutions.
LG expects that all these sectors would expand and become "increasingly profitable once the economy is back on track".
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