Samsung to layoff up to 30% workforce in some divisions
Samsung Electronics is reportedly planning a significant reduction of its global workforce across various sectors. According to Reuters, the company intends to cut up to 30% of jobs in divisions such as sales, marketing, and administration. This move will affect regions including the Americas, Europe, Asia, and Africa. The downsizing process is expected to be completed by the end of this year.
Samsung's workforce adjustment: A strategic move
Samsung, a global leader in smartphone, TV, and memory chip production, has clarified that these workforce adjustments are routine. The company aims to enhance efficiency through this strategy. It has assured that no specific targets have been set for job cuts and production staff will remain unaffected. Currently, Samsung employs approximately 267,800 people worldwide with over half of them based overseas.
Samsung's challenges and impact on India
Samsung is grappling with several challenges including a slow recovery of its chip business from an industry slump, which led to a 15-year low in profits last year. The company is also facing stiff competition from Apple in the smartphone market and SK Hynix in the high-end memory chip sector. In India, Samsung has started to lay off nearly 200 executives, with an estimated 1,000 jobs likely to be impacted due to poor sales performance and falling market share.
Samsung's restructuring and layoffs in China
In China, Samsung is reportedly planning to cut around 30% of its sales staff. These cuts are part of the company's strategy to brace for a potential global slowdown in tech product demand due to economic deceleration. The situation at Samsung's South Korean headquarters remains uncertain amid labor unrest and a recent strike by a workers' union demanding higher wages.
Samsung's stock hits 16-month low amid layoffs
Samsung Electronics's shares have reached a 16-month low as some analysts lower profit forecasts due to weak demand for smartphones and personal computers. The layoffs are a result of slowing business growth, declining consumer demand, and loss of market share in the key smartphone segment. The job cuts will affect various departments including mobile phones, consumer electronics, home appliances, and support functions.
