LG: After confirming its exit from the mobile market in April, LG stopped making smartphones and tablets globally. According to information shared by the GSMArena, the company ended this Monday (31) the production of mobile devices in South Korea and in factories around the world, such as Brazil and Vietnam.
The company left the cell phone segment after consecutive years of loss in the market. According to LG, the decision allows the company to focus its efforts on other sectors, such as the market for components for electric cars, smart appliances, AI and robotics.
Even with the end of cell phone manufacturing, the company will still support devices that are on the market today. LG says it will continue to ship Android 11 and will also release the next generation of the system for compatible smartphones, as well as providing up to four years of security patches on select models.
Future of factories
With the end of cell phone manufacturing, the company began to move its employees to the production of items from other sectors. According to the website, the company will relocate a large part of its employees in Vietnam to the household appliance assembly line.
LG’s main cell phone factory in Brazil, located in Taubaté, had about 700 layoffs. The company decided to close the facilities in the interior of São Paulo and will pay R $ 37.5 million in compensation to the affected employees.
In addition to cell phones, the Taubaté factory was responsible for producing other products, such as monitors and notebooks, but the assembly line will be moved to Manaus. The company has facilities in Amazonas and announced today (31) an expansion to support the manufacture of more products in the industrial hub.
The company also stressed that it will not stop operating fully in Taubaté. Even with the move of assembly lines to Manaus, the company will still maintain a service center in the city of São Paulo.