Samsung Electronics is planning to reduce its global workforce by up to 30% in certain divisions, targeting overseas staff in regions like the Americas, Europe, Asia, and Africa, according to sources familiar with the matter. These cuts primarily affect sales, marketing, and administrative departments, with reductions to be implemented by the end of this year. Though specific figures and countries remain unclear, the move signals Samsung’s attempt to navigate ongoing challenges in its key markets.
The South Korean tech giant, the world’s leading manufacturer of smartphones, TVs, and memory chips, is grappling with reduced global demand for its technology products, a factor cited by sources as a driver for the cost-saving measures. Samsung has instructed its global subsidiaries to cut sales and marketing staff by about 15% and administrative roles by as much as 30%. While the company acknowledged workforce adjustments, it downplayed the significance, describing them as routine and aimed at improving efficiency. Samsung also clarified that production staff will not be affected by these changes.
As of the end of 2023, Samsung employed 267,800 people, with over half of its workforce based overseas. The most significant reductions are expected in sales and marketing, a division comprising approximately 25,100 employees. In India, Samsung has already begun offering severance packages, with up to 1,000 mid-level employees potentially leaving the company. Similarly, its China division may see up to 30% of its sales staff impacted.
These cuts come amidst mounting pressure on Samsung’s key business units, particularly its semiconductor division, which has been slower to recover from an industry downturn that led to a sharp profit decline in 2023. The company faces stiff competition from rivals such as SK Hynix and Apple, particularly in the premium smartphone and memory chip markets. Additionally, labor unrest has already surfaced in South Korea, where a workers’ union at Samsung Electronics recently went on strike over wages.
Shares of Samsung have fallen to their lowest level in 16 months, as analysts adjust profit estimates in response to sluggish demand for smartphones and personal computers. While it remains uncertain if layoffs will extend to Samsung’s South Korean headquarters, one source noted that cutting jobs domestically would be politically sensitive given the company’s role as one of the country’s largest employers.
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