Samsung Elec to reshuffle units, management-Yonhap

SEOUL, Jan 15 (Reuters) - South Korean electronics giant Samsung Electronics Co Ltd (005930.KS) will announce a reshuffle on Friday that could see its business units merged and some top executives axed, Yonhap News reported.

A Samsung Electronics spokesman declined to comment on the report.

Samsung, the world's top maker of memory chips, LCD screens and TVs, will re-group its businesses under two bigger divisions that represent parts and products, Yonhap said on Thursday, citing a unnamed Samsung Group source.

Current chief executive officer Lee Yoon-woo is expected to remain CEO and assume the role of overseeing the "parts" division, which will include Samsung's semiconductor and liquid crystal display (LCD) units.

Choi Gee-sung, currently head of the telecommunications business, is seen leading the "products" division that will have mobile phones, TVs and other electronics products under its wing, according to Yonhap.

The changes are Samsung's response to the global downturn and a move to reinvigorate the company after Group Chairman Lee Kun-hee stepped down in April last year, Yonhap said.

As the spreading downturn hits consumer demand, Samsung is widely expected to report losses for the past and current quarters. Its flagship memory chip business is reeling under a brutal industry slump while the outlook is also deteriorating for other products such as mobile phones and flat-screen TVs.

After Lee Kun-hee left, Samsung Electronics replaced its CEO and the head of chip business in May 2008 but analysts said at that time the shakeup did not mean a major difference in the way the company was run.

Along with Samsung Electronics, other major Samsung Group companies will announce management changes on Friday, Yonhap said. Groupwide up to 15 top executives will leave, including heads of Samsung's chemical and some financial affiliates. (Reporting by Rhee So-eui; Editing by Keiron Henderson)