Now it's official, LG went bankrupt, at least in the Smartphone market, the company said it will stop manufacturing cell phones around the world. It was Nokia and now LG, apparently the great cell phone companies of the past are not able to keep up with the evolution of smartphones.
The company said that the reason for this decision was the loss it was having in this market since 2015, but honestly, I was taken by surprise. There are many models of intermediate cell phones from this company that cost a very affordable price that I know many people who have.
LG also said that the decision to stop manufacturing smartphones is a strategic move, so that it can focus more on other markets. Good, but which market will LG focus more, TVs, Computers, Radios, refrigerators, machines or any other?
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Has LG Stopped Making Other Product Besides Smartphones?
LG did not go bankrupt in its entire market, it will just stop making smartphones, at least that's what the company announced. Even rumors are circulating that this giant South Korean company will focus on 6G, which is the next generation of mobile internet.
But although we still don't have all the information about this decision by LG, we do have some scary data. Last year (2020), its loss was 750 million dollars, in 2019 this deficit it was even worse, $858.3 million.
In 2018, LG had a slightly “minor” loss, about 700.6 million dollars in the company's coffers. LG's loss in Smartphones has already exceeded 4 Billion Dollars since 2015, which resulted in the company leaving this market.
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Will all LG factories in Brazil be closed?
In Brazil, LG has only two factories, one in Taubaté (SP) and the other in Manaus (AM), so will they close? Although you may be thinking that these factories have closed, know that they will continue to operate, both in Manaus and Taubaté.
LG manufactures smartphones here in Brazil only in Taubaté, and monitors are also made in this same plant, an area that should continue to work. Well, there will certainly be a cut in employees in Taubaté, since about 40% of the employees at this factory are in the cell phone sector.
How many jobs can be lost in Brazil?
Above I had said that LG went bankrupt in the Smartphone market and that of its two factories in Brazil, only one manufactures cell phones. In Taubaté there are about a thousand people working for this company, 40% being laid off, so we have 400 jobs leaving.
But, know that LG hired services from outsourced companies, which are in this market, which would give about 430 more layoffs.
