Samsung is reshuffling their top management as they attempt to breathe new life into their stumbling smartphone business.
The company revealed on Tuesday that co-CEO and mobile chief J.K. Shin will be replaced by D.J. Koh, Samsung’s former head of mobile research and development.
At the same time B.K. Yoon, head of consumer electronics, will step back from the home appliances division, taking a more general strategic role.
The reappointments are an indicator of the Korean company’s changing priorities. While Samsung’s semiconductor business has remained stable, smartphone sales have taken a two-year backslide.
The company’s latest earnings revealed that the smartphone division made up just 32% of overall earnings, a five-year low.
While Mr. Shin was credited for growing the smartphone brand during his early tenure, Samsung misread demand for the popular Galaxy S6 Edge devices, contributing to poor results in what should have been their most profitable quarter of the year.
Samsung, which works on a rotating CEO system, regularly reshuffles their management at the end of the calendar year.