Samsung Electronics is preparing for massive layoffs. One of the world’s leading smartphone and microelectronics manufacturers is planning to cut costs significantly. According to the news agency Reutersthe Korean company wants to significantly reduce the number of employees in its overseas divisions. In the sales and marketing departments, the layoffs will affect 15% of employees, and administrative staff will be cut by 30%. The plan will be implemented by the end of this year and will affect jobs in America, Europe, Asia and Africa.
As of the end of 2023, Samsung employed a total of 267,800 people, of which 147,000 employees worked overseas. Most of these jobs were in manufacturing and development, with about 25,100 employees working in sales and marketing and 27,800 people working in other areas. The company has already notified employees in India and China of the upcoming layoffs.
Such measures are associated with an attempt to reduce costs amid heavy competition. Samsung’s chip manufacturing business is developing more slowly than its main competitors, especially TSMC. There is also strong competition with other manufacturers in the premium smartphone market. Last year, the company’s profit was the lowest in 15 years. The cost reduction may be part of a strategy to prepare for a slowdown in global demand for technology products due to the slowdown in the global economy.
The layoffs in South Korea are in question. The company recently faced a strike by workers who demanded higher wages. The layoffs could trigger labor unrest. And since Samsung is the country’s leading company, it could have a negative impact on the whole of South Korea.
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