Samsung Electronics, the world's largest maker of smartphones, TVs, and memory chips, is planning to cut up to 30 percent of its overseas staff in certain divisions, according to three sources with direct knowledge of the matter told Reuters. The company has instructed its subsidiaries worldwide to reduce sales and marketing staff by about 15 percent and administrative staff by up to 30 percent, with the plan expected to be executed by the end of the year. The job cuts will impact positions across the Americas, Europe, Asia, and Africa. However, it is not clear how many employees will be affected and which countries and business units will be most impacted. The sources declined to reveal their identities as the scope and details of the job cuts remain confidential.
In a statement, Samsung mentioned that workforce adjustments at some overseas operations are routine and aimed at improving efficiency. The company emphasised that there are no specific targets for the plans and that they will not affect its production staff.
Samsung layoffs in India
Recently, Samsung's India operation has been offering severance packages to some mid-level employees who have left, and the total number of employees who may need to leave the India unit could reach 1,000. In China, the company has notified its staff about expected job cuts that could affect about 30% of its employees at its sales operation, as reported by a South Korean newspaper earlier this month.
What are challenges ahead for Samsung?
These job cuts coincide with Samsung facing challenges in its chip business, which has been slower to recover compared to its competitors, as well as increased competition in the premium smartphone market. The company aims to prepare for a potential slowdown in global demand for technology products and improve its bottom line by saving costs. Despite the global mandate for job cuts, it's not immediately clear if Samsung will also cut jobs at its South Korea headquarters, where laying off workers could be a politically sensitive issue.
As of the end of 2023, Samsung employed a total of 267,800 people, with more than half (147,000 employees) based overseas. The majority of these employees are involved in manufacturing and development, with sales and marketing staff totaling around 25,100, and 27,800 employees in other areas, according to the company's latest sustainability report.
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Inputs from Reuters
