LG Electronics on Monday said it would cut costs by 30 per cent this year in order to weather what it predicts will be a 20 per cent drop in sales as consumers tighten their belts around the world.

However, Nam Yong, chief executive of the world’d third largest handset maker, ruled out making any immediate job cuts and stressed that the South Korean consumer electronics company would focus on maximising productivity and efficiency to tide over the current crisis.