After several rumors pointing to the end of LG’s cellphone division, the South Korean manufacturer is expected to officially exit the smartphone market next week. A new leak reinforced speculation released by Bloomberg indicating that the company will formalize its withdrawal from the mobile sector in early April.
According to a Twitter profile identified as Tron, which is known for making leaks, LG will formalize the end of its mobile division on April 5, next Monday. The company will formally close the mobile division in South Korea and completely dismantle the sector that currently employs around 3,000 people.
Next week, the company is also expected to reveal information about how it will proceed with the updates for mobile phones already available on the market. In addition, the manufacturer will likely bring details about the future of the LG Rollable, the company’s latest effort in the mobile device market.
It’s in Brazil?
LG has a cell phone factory in Brazil located in Taubaté, São Paulo, and employees are already mobilizing because of rumors about the closure. According to the Metalworkers Union, about 400 jobs are expected to be affected at the Brazilian factory.
The agency approved a strike status on Friday (26) and contacted the company to conduct negotiations. “The company attended the union and we started talking,” said President Claudio Batista, in an interview with G1. “Now we are going to discuss possibilities and alternatives for the issue with the factory.”
The Taubaté plant is used to build smartphones and monitors. LG still has facilities in Manaus with a focus on assembling home appliances.
According to information from the Korea Times released last week, it is possible that employees of the mobile division in Brazil will be relocated to other sectors of the factory. The same movement should happen in Vietnam, a country where LG also assembles cell phones and other electronics.