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Head of LG Electronics cool on domestic layoffs

“We are thinking to avoid laying off people in the short term," Nam Yong told reporters, though suggested there may be some job losses overseas.

LG Electronics Inc., a major global manufacturer of mobile phones and flat screen televisions, announced it aims to cut costs this year by 3 trillion won ($2.2 billion).

“We need to standardize and rationalize our businesses," Nam said.

LG, which also manufactures home appliances such as refrigerators and washing machines, had a net loss of 671.3 billion won in the three months ended Dec. 31, its worst ever for a quarter.

The company employs 82,000 people _ 30,000 in South Korea and 50,000 overseas. LG makes 60 percent of its products abroad, Nam said.

“So in the process of optimizing the (manufacturing) process, there may be layoffs," he said, referring to overseas.

Nam noted that companies in Japan have slashed their work forces to battle the global slowdown, but suggested such cuts would be hard to carry out in South Korea.

“If you look at the Japanese companies they are doing great structural reform right now," he said. “Socially, the unemployment rate is going up and in this kind of situation, if we lay off our employees it will be difficult."

South Korea's jobless rate stood at 3.3 percent in December, up from 3.1 percent in the same month the year before, but far below the 7.6 percent recently recorded in the United States and 4.5 percent in Japan.

Japanese companies including blue chips such as Sony Corp., Toyota Motor Co. and Panasonic Corp. have announced job cuts. Nissan Motor Co. said Monday it would slash 20,000 jobs, or 8.5 percent of its global work force.

South Korean companies, awash in red ink amid the global downturn, are taking steps to save money such as cutting executive pay and soliciting early retirements to save money, but so far have avoided layoffs.