Samsung Electronics, the global leader in smartphones, TVs, and memory chips, is reportedly preparing to reduce its overseas workforce in certain divisions by up to 30%. The South Korean tech giant has instructed its international subsidiaries to decrease sales and marketing staff by approximately 15% and administrative staff by up to 30%.
These job reductions, anticipated to be implemented by the end of the year, will affect employees across the Americas, Europe, Asia, and Africa, as reported by Reuters. However, the precise number of employees to be laid off and the specific countries and business units most impacted remain unclear. Samsung has clarified that these workforce adjustments are a routine measure aimed at enhancing efficiency, with no designated targets and no impact on production personnel.
As of the end of 2023, Samsung employed a total of 267,800 individuals, with over half, or 147,000 employees, located overseas. The company’s Indian operations, which employ around 25,000 individuals, could potentially experience up to 1,000 job cuts. In China, roughly 30% of the sales operation workforce is anticipated to be affected.
The job cuts arrive at a time when Samsung is facing significant pressure on its core units. Its chip business has lagged behind its rivals in recovering from an industry slump that pushed its profit to a 15-year low last year. In the premium smartphone market, Samsung is facing intense competition from Apple Inc. and China’s Huawei.
The job cuts are perceived as a strategy to prepare for a slowdown in global demand for tech products and to strengthen its bottom line through cost reductions. These layoffs follow recent reports of declining sales and intensified market competition in India, where the company’s value and volume market share have reached their lowest point in a decade, prompting the company to reportedly prepare for layoffs. Additionally, earlier this year, Samsung Electronics employees initiated a three-day strike demanding improved compensation, threatening further actions if their demands were not met.
These moves highlight the challenges facing the tech industry as it navigates slowing growth and increased competition. Samsung’s decision to reduce its workforce is a strategic response to these pressures and underscores the importance of efficiency and cost control in today’s dynamic market landscape.
