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Samsung Plans Significant Global Workforce Reduction of 30%.
Samsung is set to reduce its overseas workforce by up to 30% in certain divisions, according to exclusive information obtained by Reuters from multiple sources.As the leading manufacturer of smartphones, TVs, and memory chips, Samsung has instructed its global subsidiaries to cut their sales and marketing teams by approximately 15%. Additionally, administrative staff may face reductions of up to 30%.
The restructuring is expected to be completed by the end of this year and will affect positions across the Americas, Europe, Asia, and Africa. However, Samsung has stated that these adjustments are part of routine efficiency improvements and do not target production staff.
According to official data, Samsung employed 267,800 people at the end of last year, with over half of these employees based outside South Korea.
The so-called “global mandate” for job cuts was issued about three weeks ago.
This decision comes as Samsung deals with significant challenges in its key business areas. The company’s semiconductor sector is struggling to recover from a severe industry downturn, with profits hitting a 15-year low last year. In response, Samsung replaced the head of its semiconductor division in May to address what it termed a “chip crisis” and aims to catch up with smaller rival SK Hynix in supplying high-end memory chips for AI applications.
Moreover, Samsung faces intense competition from Apple and Huawei in the premium smartphone market. It remains unclear if job cuts will extend to Samsung’s headquarters in South Korea. Such moves could potentially provoke labor unrest; a South Korean workers’ union recently staged a strike demanding higher wages and benefits. Samsung Electronics’ shares fell to their lowest level in 16 months on Wednesday.
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