Samsung CEO Resigns Ahead of Company’s Q3 Financials Announcement

Samsung Electronics made two announcements today which contrasts each other. At first Samsung announce very positive Q3 earnings. Few hours later it posted the resignation letter from CEO Oh-Hyun Kwon. While commenting on resignation, Kwon said that its time for new leadership as Samsung is facing unprecedented crisis inside out. Samsung CEO Resigns Ahead of Company’s Q3 Financials Announcement.

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Samsung had a very good year as far as its earnings , posting very strong first and second quarter results. However from a leadership perspective Samsung had a very difficult year. In August, Samsung Vice Chairman Jay Y. Lee was sentenced to five years in jail after being guilty of bribery, embezzlement and perjury charges.

Samsung CEO Resigns Ahead of Company’s Q3 Financials Announcement

Kwon has served as Samsung Electronics CEO since 2012. In a letter to employees, Kwon wrote that:

His resignation is something I had been thinking long and hard about for quite some time. It has not been an easy decision, but I feel I can no longer put it off. As we are confronted with unprecedented crisis inside out, I believe that time has now come for the company start anew, with a new spirit and young leadership to better respond to challenges arising from the rapidly changing IT industry

Kwon who joined Samsung in 1985. He said that he needs a new leader more than ever. He also said that he wants to move to the next chapter of lift.

Samsung was upbeat in its third quarter earning (q3). The company predicted the profit of about 14.5 trillion. This figure shows a very healthy 179 percent increase from 5.2 trillion in their quarter of 2016. In Q3 2016, Samsung results went down due to discontinuation of Galaxy Note 7.

Samsung is expected to benefit more form selling parts to other smartphone makers like Apple. Apple relies on Samsung to supply key components. Samsung’s OLED display is used in latest iPhone.

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