LG Electronics Implements Emergency Management, Reduces Travel Expenses and Costs by 20% Year-on-Year

LG Electronics Implements Emergency Management, Reduces Travel Expenses and Costs by 20% Year-on-Year: COMPANY / Reporter Kim Jisun / 2024-08-13 03:56:34

(Photo= Yonhap news)

[Alpha Biz= Reporter Kim Jisun] LG Electronics Enters Emergency Management Mode, Cuts Costs by 20% Amid Uncertain Outlook

LG Electronics has initiated emergency management measures, reducing expenses such as travel and entertainment costs by 20% compared to the previous year. Despite posting strong earnings, the company is preparing for uncertainties in the second half of the year.

According to industry sources on the 12th, LG Electronics has reduced expenses, including travel, entertainment, and meeting costs, to 80% of the original budget since the end of last month.

The decision comes as consumer sentiment remains sluggish due to high interest rates and inflation, with rising costs such as shipping fees adding to the pressure.

An LG Electronics representative stated, "As a proactive response to the uncertain business environment in the second half, we have been tightening budgets for travel, entertainment, and other expenses across the company since last month."

Meanwhile, LG Electronics achieved record second-quarter results, with sales of 21.6944 trillion won and operating profit of 1.1962 trillion won.