Samsung Plans to Shrink Home Appliance and TV Business Teams

Samsung will announce regular executive appointments for vice president-level positions this week. The company reportedly plans to reduce the number of executives, particularly in underperforming units within the DX (Device eXperience) division. This comes as it aims to address profitability challenges in its home appliance and TV businesses.

Samsung to focus on underperforming units in upcoming executive appointments

Last week, Samsung appointed TM Roh as the Head of its Device eXperience (DX) Division and a co-CEO, alongside other top leaders. The company has now also notified the division of executive retirements, with a larger number than expected executives leaving the home appliance unit.

“One of the fundamental reasons for the profitability issues in Samsung Electronics’ home appliance business is that manufacturers have been placed at a disadvantage in the global distribution structure,” said a Samsung official (via Chosun). “In China, distributors such as JD.com and Alibaba, and in Korea, companies like Coupang, have gained a superior position over suppliers, significantly weakening Samsung’s price negotiation power.”

The executive changes are part of Samsung’s strategy to stabilize underperforming divisions while preparing for growth through innovation. The company may integrate artificial intelligence (AI) more deeply into its operations to improve efficiency across the home appliance and TV businesses. Analysts expect the firm may bring in new executives with experience and proven results in advanced technology areas, including AI, next-generation semiconductors, and 6G.

Meanwhile, the MX division (in charge of the smartphone business) may now have a growing influence across the entire finished goods business. Traditionally, heads of the DX division came from home appliance or TV backgrounds. Now that Roh (who has a solid track record in advancing the Galaxy smartphone lineup) is leading the division, successful strategies from the MX businesses may make their way to underperforming units. This could help improve profitability across home appliances and TVs.