Samsung Electronics announced on Friday that it will restructure itself into two divisions to fight the slowing global economy. The new Device Solution unit will combine Samsung's semiconductor and LCD panel business, while the Digital Media and Communications division will focus on consumer products like cell phones, TVs, printers, computers and home appliances.
Samsung Electronics is the world's biggest manufacturer of memory chips, liquid crystal displays and flat screen televisions. It ranks second behind Finland's Nokia Corp. in mobile phones.
The company, however, has been struggling of late amid the global downturn and falling prices for semiconductors and flat screens.
Samsung's net profit fell 44 percent in the third quarter of 2008 from the same period in 2007. Samsung is scheduled to announce fourth-quarter earnings on Jan. 23.
"We needed to effectively respond to the current global recession," Samsung spokeswoman Hwang Eun-ju said regarding the reason for the changes.
She also said that Samsung will cut the pay of top executives by up to 20 percent.