Samsung Electronics Plans Global Job Cuts of Up to 30% in Some Divisions

Samsung Elec plans global job cuts of up to 30% in some divisions, sources say

Samsung Electronics , the world's top maker of smartphones, TVs and memory chips, is cutting up to 30% of its overseas staff at some divisions, three sources with direct knowledge of the matter told Reuters. South Korea-based Samsung has instructed subsidiaries worldwide to reduce sales and marketing staff by about 15% and the administrative staff by up to 30%, two of the sources said. The plan will be implemented by the end of this year and would impact jobs across the Americas, Europe, Asia and Africa, one person said. Six other people familiar with the matter also confirmed Samsung's planned global headcount reduction. It is not clear how many people would be let go and which countries and business units would be most affected. The sources declined to be named because the scope and details of the job cuts remained confidential. In a statement, Samsung said workforce adjustments conducted at some overseas operations were routine, and aimed at improving efficiency. It said there are no specific targets for the plans, adding that they are not impacting its production staff. Samsung employed a total of 267,800 people as of the end of 2023, and more than half, or 147,000 employees, are based overseas, according to its latest sustainability report. Manufacturing and development accounted for most of those jobs and sales and marketing staff was around 25,100, while 27,800 people worked in other areas, the report said. The "global mandate" on job cuts was sent about three weeks ago, and Samsung's India operation was already offering severance packages to some mid-level employees who have left in recent weeks, one of the direct sources said. The total employees who may need to leave the India unit could reach 1,000, the person added. Samsung employs some 25,000 people in India. In China, Samsung has notified its staff about the job cuts that are expected to affect about 30% of its employees at its sales operation, a South Korean newspaper reported this month. Big Challenge The job cuts come as Samsung grapples with mounting pressure on its key units. Its bread-and-butter chip business has been slower than its rivals in recovering from a severe downturn in the industry that drove its profit to a 15-year low last year. In May, Samsung replaced the head of its semiconductor division in a bid to overcome a "chip crisis" as it seeks to catch up with smaller rival SK Hynix in supplying high-end memory chips used in artificial intelligence chipsets. In the premium smartphone market, Samsung is facing stiff competition from Apple and China's Huawei, while it has long lagged behind TSMC in contract chip manufacturing. And in India, which earns Samsung around $12 billion in annual revenue, a strike over wages is disrupting production. One of the sources familiar with the plans said the job cuts were being made in preparation for a slowdown in global demand for technology products as the global economy slows. Another source said Samsung is seeking to shore up its bottom line by saving costs. It was not immediately clear if Samsung will also cut jobs in its headquarters South Korea. One of the sources said Samsung would find it difficult to lay off workers in South Korea because it was a politically sensitive issue. Conglomerate Samsung Group, of which the electronics giant is the crown jewel, is the country's biggest employer and plays a key role in its economy. Job cuts could also stir labour unrest at home. A South Korean workers' union at Samsung Electronics recently went on strike for several days, demanding higher wages and benefits. Shares in Samsung Electronics, South Korea's most valuable stock, are trading at their lowest level in 16 months on Wednesday, as some analysts cut their profit estimates for the company recently, citing a weak recovery in demand for smartphones and personal computers. Published - September 11, 2024 04:39 pm IST Read Comments

Samsung Elec plans global job cuts of up to 30% in some divisions, sources say

The plan will be implemented by the end of this year and would impact jobs across the Americas, Europe, Asia and Africa, one person said. Six other people familiar with the matter also confirmed Samsung's planned global headcount reduction. It is not clear how many people would be let go and which countries and business units would be most affected. The sources declined to be named because the scope and details of the job cuts remained confidential. In a statement, Samsung said workforce adjustments conducted at some overseas operations were routine, and aimed at improving efficiency. It said there are no specific targets for the plans, adding that they are not impacting its production staff. Samsung employed a total of 267,800 people as of the end of 2023, and more than half, or 147,000 employees, are based overseas, according to its latest sustainability report. Manufacturing and development accounted for most of those jobs and sales and marketing staff was around 25,100, while 27,800 people worked in other areas, the report said. The "global mandate" on job cuts was sent about three weeks ago, and Samsung's India operation was already offering severance packages to some mid-level employees who have left in recent weeks, one of the direct sources said. The total employees who may need to leave the India unit could reach 1,000, the person added. Samsung employs some 25,000 people in India. In China, Samsung has notified its staff about the job cuts that are expected to affect about 30% of its employees at its sales operation, a South Korean newspaper reported this month. The job cuts come as Samsung grapples with mounting pressure on its key units. Its bread-and-butter chip business has been slower than its rivals in recovering from a severe downturn in the industry that drove its profit to a 15-year low last year. In May, Samsung replaced the head of its semiconductor division in a bid to overcome a "chip crisis" as it seeks to catch up with smaller rival SK Hynix in supplying high-end memory chips used in artificial intelligence chipsets. In the premium smartphone market, Samsung is facing stiff competition from Apple and China's Huawei, while it has long lagged behind TSMC in contract chip manufacturing. And in India, which earns Samsung around $12 billion in annual revenue, a strike over wages is disrupting production. One of the sources familiar with the plans said the job cuts were being made in preparation for a slowdown in global demand for technology products as the global economy slows. Another source said Samsung is seeking to shore up its bottom line by saving costs. It was not immediately clear if Samsung will also cut jobs in its headquarters South Korea. One of the sources said Samsung would find it difficult to lay off workers in South Korea because it was a politically sensitive issue. Conglomerate Samsung Group, of which the electronics giant is the crown jewel, is the country's biggest employer and plays a key role in its economy. Job cuts could also stir labour unrest at home. A South Korean workers' union at Samsung Electronics recently went on strike for several days, demanding higher wages and benefits. Shares in Samsung Electronics, South Korea's most valuable stock, are trading at their lowest level in 16 months on Wednesday, as some analysts cut their profit estimates for the company recently, citing a weak recovery in demand for smartphones and personal computers. (Reporting by Seungkyu Lim, Cynthia Kim, Hyunjoo Jin, Heekyong Yang in Seoul, Aditya Karla and Munsif Vengattil in Mumbai, Krystal Hu in New York; Editing by Miyoung Kim and Miral Fahmy)

Exclusive-Samsung Elec plans global job cuts of up to 30% in some divisions, sources say

SEOUL/NEW DELHI (Reuters) - Samsung Electronics, the world's top maker of smartphones, TVs and memory chips, is cutting up to 30% of its overseas staff at some divisions, three sources with direct knowledge of the matter told Reuters. South Korea-based Samsung has instructed subsidiaries worldwide to reduce sales and marketing staff by about 15% and the administrative staff by up to 30%, two of the sources said. The plan will be implemented by the end of this year and would impact jobs across the Americas, Europe, Asia and Africa, one person said. Six other people familiar with the matter also confirmed Samsung's planned global headcount reduction. It is not clear how many people would be let go and which countries and business units would be most affected. The sources declined to be named because the scope and details of the job cuts remained confidential. In a statement, Samsung said workforce adjustments conducted at some overseas operations were routine, and aimed at improving efficiency. It said there are no specific targets for the plans, adding that they are not impacting its production staff. Samsung employed a total of 267,800 people as of the end of 2023, and more than half, or 147,000 employees, are based overseas, according to its latest sustainability report. Manufacturing and development accounted for most of those jobs and sales and marketing staff was around 25,100, while 27,800 people worked in other areas, the report said. The "global mandate" on job cuts was sent about three weeks ago, and Samsung's India operation was already offering severance packages to some mid-level employees who have left in recent weeks, one of the direct sources said. The total employees who may need to leave the India unit could reach 1,000, the person added. Samsung employs some 25,000 people in India. In China, Samsung has notified its staff about the job cuts that are expected to affect about 30% of its employees at its sales operation, a South Korean newspaper reported this month. BIG CHALLENGES The job cuts come as Samsung grapples with mounting pressure on its key units. Its bread-and-butter chip business has been slower than its rivals in recovering from a severe downturn in the industry that drove its profit to a 15-year low last year. In May, Samsung replaced the head of its semiconductor division in a bid to overcome a "chip crisis" as it seeks to catch up with smaller rival SK Hynix in supplying high-end memory chips used in artificial intelligence chipsets. In the premium smartphone market, Samsung is facing stiff competition from Apple and China's Huawei, while it has long lagged behind TSMC in contract chip manufacturing. And in India, which earns Samsung around $12 billion in annual revenue, a strike over wages is disrupting production. One of the sources familiar with the plans said the job cuts were being made in preparation for a slowdown in global demand for technology products as the global economy slows. Another source said Samsung is seeking to shore up its bottom line by saving costs. It was not immediately clear if Samsung will also cut jobs in its headquarters South Korea. One of the sources said Samsung would find it difficult to lay off workers in South Korea because it was a politically sensitive issue. Conglomerate Samsung Group, of which the electronics giant is the crown jewel, is the country's biggest employer and plays a key role in its economy. Job cuts could also stir labour unrest at home. A South Korean workers' union at Samsung Electronics recently went on strike for several days, demanding higher wages and benefits. Shares in Samsung Electronics, South Korea's most valuable stock, are trading at their lowest level in 16 months on Wednesday, as some analysts cut their profit estimates for the company recently, citing a weak recovery in demand for smartphones and personal computers. (Reporting by Seungkyu Lim, Cynthia Kim, Hyunjoo Jin, Heekyong Yang in Seoul, Aditya Karla and Munsif Vengattil in Mumbai, Krystal Hu in New York; Editing by Miyoung Kim and Miral Fahmy)

Samsung Electronics plans global job cuts of up to 30% in some divisions: Reuters, citing sources

The sources declined to be named because the scope and details of the job cuts remained confidential. In a statement, Samsung said workforce adjustments conducted at some overseas operations were routine, and aimed at improving efficiency. It said there are no specific targets for the plans, adding that they are not impacting its production staff. Samsung employed a total of 267,800 people as of the end of 2023, and more than half, or 147,000 employees, are based overseas, according to its latest sustainability report. Manufacturing and development accounted for most of those jobs and sales and marketing staff was around 25,100, while 27,800 people worked in other areas, the report said. The "global mandate" on job cuts was sent about three weeks ago, and Samsung's India operation was already offering severance packages to some mid-level employees who have left in recent weeks, one of the direct sources said. The total employees who may need to leave the India unit could reach 1,000, the person added. Samsung employs some 25,000 people in India. In China, Samsung has notified its staff about the job cuts that are expected to affect about 30% of its employees at its sales operation, a South Korean newspaper reported this month. The job cuts come as Samsung grapples with mounting pressure on its key units. Its bread-and-butter chip business has been slower than its rivals in recovering from a severe downturn in the industry that drove its profit to a 15-year low last year. In May, Samsung replaced the head of its semiconductor division in a bid to overcome a "chip crisis" as it seeks to catch up with smaller rival SK Hynix in supplying high-end memory chips used in artificial intelligence chipsets. In the premium smartphone market, Samsung is facing stiff competition from Apple and China's Huawei, while it has long lagged behind TSMC in contract chip manufacturing. And in India, which earns Samsung around $12 billion in annual revenue, a strike over wages is disrupting production. One of the sources familiar with the plans said the job cuts were being made in preparation for a slowdown in global demand for technology products as the global economy slows. Another source said Samsung is seeking to shore up its bottom line by saving costs.

Samsung plans global job cuts of up to 30% in some divisions

Samsung Electronics is cutting up to 30% of its overseas staff in some divisions by the end of this year. The reductions will impact sales, marketing, and administrative roles across the Americas, Europe, Asia, and Africa. This move comes as Samsung faces challenges in its chip business and stiff competition in the smartphone market.Samsung Electronics , the world's top maker of smartphones, TVs and memory chips, is cutting up to 30% of its overseas staff at some divisions, three sources with direct knowledge of the matter told Reuters. South Korea-based Samsung has instructed subsidiaries worldwide to reduce sales and marketing staff by about 15% and the administrative staff by up to 30%, two of the sources said. The plan will be implemented by the end of this year and would impact jobs across the Americas, Europe, Asia and Africa, one person said. Six other people familiar with the matter also confirmed Samsung's planned global headcount reduction. Also Read ET Exclusive:Samsung India to lay off over 200 executives with business slowing down It is not clear how many people would be let go and which countries and business units would be most affected. The sources declined to be named because the scope and details of the job cuts remained confidential. In a statement, Samsung said workforce adjustments conducted at some overseas operations were routine, and aimed at improving efficiency. It said there are no specific targets for the plans, adding that they are not impacting its production staff. Samsung employed a total of 267,800 people as of the end of 2023, and more than half, or 147,000 employees, are based overseas, according to its latest sustainability report. Manufacturing and development accounted for most of those jobs and sales and marketing staff was around 25,100, while 27,800 people worked in other areas, the report said. The "global mandate" on job cuts was sent about three weeks ago, and Samsung's India operation was already offering severance packages to some mid-level employees who have left in recent weeks, one of the direct sources said. The total employees who may need to leave the India unit could reach 1,000, the person added. Samsung employs some 25,000 people in India. In China, Samsung has notified its staff about the job cuts that are expected to affect about 30% of its employees at its sales operation, a South Korean newspaper reported this month. The job cuts come as Samsung grapples with mounting pressure on its key units. Its bread-and-butter chip business has been slower than its rivals in recovering from a severe downturn in the industry that drove its profit to a 15-year low last year. In May, Samsung replaced the head of its semiconductor division in a bid to overcome a "chip crisis" as it seeks to catch up with smaller rival SK Hynix in supplying high-end memory chips used in artificial intelligence chipsets. In the premium smartphone market, Samsung is facing stiff competition from Apple and China's Huawei, while it has long lagged behind TSMC in contract chip manufacturing. And in India, which earns Samsung around $12 billion in annual revenue, a strike over wages is disrupting production. One of the sources familiar with the plans said the job cuts were being made in preparation for a slowdown in global demand for technology products as the global economy slows. Another source said Samsung is seeking to shore up its bottom line by saving costs. It was not immediately clear if Samsung will also cut jobs in its headquarters South Korea. One of the sources said Samsung would find it difficult to lay off workers in South Korea because it was a politically sensitive issue. Conglomerate Samsung Group, of which the electronics giant is the crown jewel, is the country's biggest employer and plays a key role in its economy. Job cuts could also stir labour unrest at home. A South Korean workers' union at Samsung Electronics recently went on strike for several days, demanding higher wages and benefits. Shares in Samsung Electronics, South Korea's most valuable stock, are trading at their lowest level in 16 months on Wednesday, as some analysts cut their profit estimates for the company recently, citing a weak recovery in demand for smartphones and personal computers.

Samsung Layoffs: Global Job Cuts of Up to 30% in Some Divisions Lined Up - News18

SEOUL/NEW DELHI: Samsung Electronics, the world's top maker of smartphones, TVs and memory chips, is cutting up to 30% of its overseas staff at some divisions, three sources with direct knowledge of the matter told Reuters. South Korea-based Samsung has instructed subsidiaries worldwide to reduce sales and marketing staff by about 15% and the administrative staff by up to 30%, two of the sources said. The plan will be implemented by the end of this year and would impact jobs across the Americas, Europe, Asia and Africa, one person said. Six other people familiar with the matter also confirmed Samsung's planned global headcount reduction. It is not clear how many people would be let go and which countries and business units would be most affected. The sources declined to be named because the scope and details of the job cuts remained confidential. In a statement, Samsung said workforce adjustments conducted at some overseas operations were routine, and aimed at improving efficiency. It said there are no specific targets for the plans, adding that they are not impacting its production staff. Samsung employed a total of 267,800 people as of the end of 2023, and more than half, or 147,000 employees, are based overseas, according to its latest sustainability report. Manufacturing and development accounted for most of those jobs and sales and marketing staff was around 25,100, while 27,800 people worked in other areas, the report said. The "global mandate" on job cuts was sent about three weeks ago, and Samsung's India operation was already offering severance packages to some mid-level employees who have left in recent weeks, one of the direct sources said. The total employees who may need to leave the India unit could reach 1,000, the person added. Samsung employs some 25,000 people in India. In China, Samsung has notified its staff about the job cuts that are expected to affect about 30% of its employees at its sales operation, a South Korean newspaper reported this month. BIG CHALLENGES The job cuts come as Samsung grapples with mounting pressure on its key units. Its bread-and-butter chip business has been slower than its rivals in recovering from a severe downturn in the industry that drove its profit to a 15-year low last year. In May, Samsung replaced the head of its semiconductor division in a bid to overcome a "chip crisis" as it seeks to catch up with smaller rival SK Hynix in supplying high-end memory chips used in artificial intelligence chipsets. In the premium smartphone market, Samsung is facing stiff competition from Apple and China's Huawei, while it has long lagged behind TSMC in contract chip manufacturing. And in India, which earns Samsung around $12 billion in annual revenue, a strike over wages is disrupting production. One of the sources familiar with the plans said the job cuts were being made in preparation for a slowdown in global demand for technology products as the global economy slows. Another source said Samsung is seeking to shore up its bottom line by saving costs. It was not immediately clear if Samsung will also cut jobs in its headquarters South Korea. One of the sources said Samsung would find it difficult to lay off workers in South Korea because it was a politically sensitive issue. Conglomerate Samsung Group, of which the electronics giant is the crown jewel, is the country's biggest employer and plays a key role in its economy. Job cuts could also stir labour unrest at home. A South Korean workers' union at Samsung Electronics recently went on strike for several days, demanding higher wages and benefits. Shares in Samsung Electronics, South Korea's most valuable stock, are trading at their lowest level in 16 months on Wednesday, as some analysts cut their profit estimates for the company recently, citing a weak recovery in demand for smartphones and personal computers.

Exclusive-Samsung Elec plans global job cuts of up to 30% in some divisions, sources say

The plan will be implemented by the end of this year and would impact jobs across the Americas, Europe, Asia and Africa, one person said. Six other people familiar with the matter also confirmed Samsung's planned global headcount reduction. It is not clear how many people would be let go and which countries and business units would be most affected. The sources declined to be named because the scope and details of the job cuts remained confidential. In a statement, Samsung said workforce adjustments conducted at some overseas operations were routine, and aimed at improving efficiency. It said there are no specific targets for the plans, adding that they are not impacting its production staff. Samsung employed a total of 267,800 people as of the end of 2023, and more than half, or 147,000 employees, are based overseas, according to its latest sustainability report. Manufacturing and development accounted for most of those jobs and sales and marketing staff was around 25,100, while 27,800 people worked in other areas, the report said. The "global mandate" on job cuts was sent about three weeks ago, and Samsung's India operation was already offering severance packages to some mid-level employees who have left in recent weeks, one of the direct sources said. The total employees who may need to leave the India unit could reach 1,000, the person added. Samsung employs some 25,000 people in India. In China, Samsung has notified its staff about the job cuts that are expected to affect about 30% of its employees at its sales operation, a South Korean newspaper reported this month. BIG CHALLENGES The job cuts come as Samsung grapples with mounting pressure on its key units. Its bread-and-butter chip business has been slower than its rivals in recovering from a severe downturn in the industry that drove its profit to a 15-year low last year. In May, Samsung replaced the head of its semiconductor division in a bid to overcome a "chip crisis" as it seeks to catch up with smaller rival SK Hynix in supplying high-end memory chips used in artificial intelligence chipsets. In the premium smartphone market, Samsung is facing stiff competition from Apple and China's Huawei, while it has long lagged behind TSMC in contract chip manufacturing. And in India, which earns Samsung around $12 billion in annual revenue, a strike over wages is disrupting production. One of the sources familiar with the plans said the job cuts were being made in preparation for a slowdown in global demand for technology products as the global economy slows. Another source said Samsung is seeking to shore up its bottom line by saving costs. It was not immediately clear if Samsung will also cut jobs in its headquarters South Korea. One of the sources said Samsung would find it difficult to lay off workers in South Korea because it was a politically sensitive issue. Conglomerate Samsung Group, of which the electronics giant is the crown jewel, is the country's biggest employer and plays a key role in its economy. Job cuts could also stir labour unrest at home. A South Korean workers' union at Samsung Electronics recently went on strike for several days, demanding higher wages and benefits. Shares in Samsung Electronics, South Korea's most valuable stock, are trading at their lowest level in 16 months on Wednesday, as some analysts cut their profit estimates for the company recently, citing a weak recovery in demand for smartphones and personal computers. (Reporting by Seungkyu Lim, Cynthia Kim, Hyunjoo Jin, Heekyong Yang in Seoul, Aditya Karla and Munsif Vengattil in Mumbai, Krystal Hu in New York; Editing by Miyoung Kim and Miral Fahmy)

Samsung Electronics plans global job cuts of up to 30%, sources say

Samsung Electronics, the world's top maker of smartphones, TVs and memory chips, is cutting up to 30% of its overseas staff at some divisions, three sources with direct knowledge of the matter told Reuters. South Korea-based Samsung has instructed subsidiaries worldwide to reduce sales and marketing staff by about 15% and the administrative staff by up to 30%, two of the sources said. The plan will be implemented by the end of this year and would impact jobs across the Americas, Europe, Asia and Africa, one person said. Six other people familiar with the matter also confirmed Samsung's planned global headcount reduction. It is not clear how many people would be let go and which countries and business units would be most affected. The sources declined to be named because the scope and details of the job cuts remained confidential. In a statement, Samsung said workforce adjustments conducted at some overseas operations were routine, and aimed at improving efficiency. It said there are no specific targets for the plans, adding that they are not impacting its production staff. Samsung employed a total of 267,800 people as of the end of 2023, and more than half, or 147,000 employees, are based overseas, according to its latest sustainability report. Manufacturing and development accounted for most of those jobs and sales and marketing staff was around 25,100, while 27,800 people worked in other areas, the report said. The "global mandate" on job cuts was sent about three weeks ago, and Samsung's India operation was already offering severance packages to some mid-level employees who have left in recent weeks, one of the direct sources said. The total employees who may need to leave the India unit could reach 1,000, the person added. Samsung employs some 25,000 people in India. In China, Samsung has notified its staff about the job cuts that are expected to affect about 30% of its employees at its sales operation, a South Korean newspaper reported this month. Big challenges The job cuts come as Samsung grapples with mounting pressure on its key units. Its bread-and-butter chip business has been slower than its rivals in recovering from a severe downturn in the industry that drove its profit to a 15-year low last year. In May, Samsung replaced the head of its semiconductor division in a bid to overcome a "chip crisis" as it seeks to catch up with smaller rival SK Hynix in supplying high-end memory chips used in artificial intelligence chipsets. In the premium smartphone market, Samsung is facing stiff competition from Apple and China's Huawei, while it has long lagged behind TSMC in contract chip manufacturing. And in India, which earns Samsung around $12 billion in annual revenue, a strike over wages is disrupting production. One of the sources familiar with the plans said the job cuts were being made in preparation for a slowdown in global demand for technology products as the global economy slows. Another source said Samsung is seeking to shore up its bottom line by saving costs. It was not immediately clear if Samsung will also cut jobs in its headquarters in South Korea. One of the sources said Samsung would find it difficult to lay off workers in South Korea because it was a politically sensitive issue. Conglomerate Samsung Group, of which the electronics giant is the crown jewel, is the country's biggest employer and plays a key role in its economy. Job cuts could also stir labor unrest at home. A South Korean workers' union at Samsung Electronics recently went on strike for several days, demanding higher wages and benefits. Shares in Samsung Electronics, South Korea's most valuable stock, are trading at their lowest level in 16 months on Wednesday, as some analysts cut their profit estimates for the company recently, citing a weak recovery in demand for smartphones and personal computers.

Samsung plans sweeping global job cuts, sources say

STORY: Samsung plans to cut up to 30% of its overseas staff at some divisions. Reuters exclusively revealed the news after speaking to sources. The world's top maker of smartphones, TVs and memory chips has told subsidiaries worldwide to reduce sales and marketing staff by about 15%, according to two sources. They said it has also called administrative staff to be reduced by up to 30%. One source said the plan will be implemented by the end of this year and would impact jobs across the Americas, Europe, Asia and Africa. In a statement, Samsung said workforce adjustments conducted at some overseas operations were routine, and aimed at improving efficiency. It said there are no specific targets for the plans, adding they are not impacting its production staff. Official data showed Samsung employed 267,800 people as of the end of last year, with more than half based overseas. A source said the so-called "global mandate" on job cuts was sent about three weeks ago. The job cuts come as Samsung grapples with mounting pressure on its key units. Its chip business has been slower than its rivals in recovering from a severe downturn in the industry, and profit at the unit hit a 15-year low last year. In May, Samsung replaced the head of its semiconductor division to overcome a "chip crisis". It aims to catch up with smaller rival SK Hynix in supplying high-end memory chips used in artificial intelligence chipsets. Samsung also faces tough competition from Apple and China's Huawei in the premium smartphone market. It was not immediately clear if Samsung will also cut jobs in its headquarters South Korea. Job cuts could stir labor unrest at home and one source cautioned it could be a politically sensitive issue. A South Korean workers' union at Samsung Electronics recently went on strike for several days, demanding higher wages and benefits. Shares in Samsung Electronics traded at their lowest level in 16 months on Wednesday.

Samsung plans global job cuts of up to 30% in some divisions: Report

Samsung Electronics, the world's top maker of smartphones, TVs and memory chips, is cutting up to 30 per cent of its overseas staff at some divisions, three sources with direct knowledge of the matter told Reuters. South Korea-based Samsung has instructed subsidiaries worldwide to reduce sales and marketing staff by about 15 per cent and the administrative staff by up to 30 per cent, two of the sources said. Click here to connect with us on WhatsApp The plan will be implemented by the end of this year and would impact jobs across the Americas, Europe, Asia and Africa, one person said. Six other people familiar with the matter also confirmed Samsung's planned global headcount reduction. It is not clear how many people would be let go and which countries and business units would be most affected. The sources declined to be named because the scope and details of the job cuts remained confidential. In a statement, Samsung said workforce adjustments conducted at some overseas operations were routine, and aimed at improving efficiency. It said there are no specific targets for the plans, adding that they are not impacting its production staff. More From This Section APSEZ, DPA to develop multipurpose berth at Gujarat's Kandla Port UK clears decks for GBP 500 mn grant for Tata Steel's Port Talbot project Vedanta Resources gets $900 mn via first dollar bond issue to prepay loans 26-yr-old arrested after setting Ola Electric's showroom ablaze in K'taka Premium Nibe shoots for stars with Earth observation satellite constellation Samsung employed a total of 267,800 people as of the end of 2023, and more than half, or 147,000 employees, are based overseas, according to its latest sustainability report. Manufacturing and development accounted for most of those jobs and sales and marketing staff was around 25,100, while 27,800 people worked in other areas, the report said. The "global mandate" on job cuts was sent about three weeks ago, and Samsung's India operation was already offering severance packages to some mid-level employees who have left in recent weeks, one of the direct sources said. The total employees who may need to leave the India unit could reach 1,000, the person added. Samsung employs some 25,000 people in India. In China, Samsung has notified its staff about the job cuts that are expected to affect about 30 per cent of its employees at its sales operation, a South Korean newspaper reported this month. BIG CHALLENGES The job cuts come as Samsung grapples with mounting pressure on its key units. Its bread-and-butter chip business has been slower than its rivals in recovering from a severe downturn in the industry that drove its profit to a 15-year low last year. In May, Samsung replaced the head of its semiconductor division in a bid to overcome a "chip crisis" as it seeks to catch up with smaller rival SK Hynix in supplying high-end memory chips used in artificial intelligence chipsets. In the premium smartphone market, Samsung is facing stiff competition from Apple and China's Huawei, while it has long lagged behind TSMC in contract chip manufacturing. And in India, which earns Samsung around $12 billion in annual revenue, a strike over wages is disrupting production. One of the sources familiar with the plans said the job cuts were being made in preparation for a slowdown in global demand for technology products as the global economy slows. Another source said Samsung is seeking to shore up its bottom line by saving costs. It was not immediately clear if Samsung will also cut jobs in its headquarters South Korea. One of the sources said Samsung would find it difficult to lay off workers in South Korea because it was a politically sensitive issue. Conglomerate Samsung Group, of which the electronics giant is the crown jewel, is the country's biggest employer and plays a key role in its economy. Job cuts could also stir labour unrest at home. A South Korean workers' union at Samsung Electronics recently went on strike for several days, demanding higher wages and benefits. Shares in Samsung Electronics, South Korea's most valuable stock, are trading at their lowest level in 16 months on Wednesday, as some analysts cut their profit estimates for the company recently, citing a weak recovery in demand for smartphones and personal computers. (Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.) Also Read Workers' strike at Samsung India plant enters Day 2, production affected Workers at Samsung Electronics plant begin strike, production hit Samsung Crystal 4K Dynamic TV launched with 4K Upscaling, AirSlim Design Samsung Electronics' main SK union to strike over pay from Thursday Why are India's consumer durable makers locked in intense warranty war?

Samsung Reportedly Cutting Up To 30% of Global Jobs in Certain Units

Samsung has faced rising competition in the memory chip business, and has been less of a beneficiary than some of its rivals. South Korean tech giant Samsung Electronics reportedly is set to trim an unspecified number of overseas jobs, with cuts in some divisions potentially reaching 30% of the total headcount, according to Reuters. Some of the company's subsidiaries worldwide have been told to slash sales and marketing teams by roughly 15% and administrative staff by up to 30%, with cuts expected to impact Samsung's operations in Europe, North America, Africa, and Asia, the report said. Given that the cuts are percentages of individual teams within Samsung's operations, it's difficult to estimate a total number of its roughly 268,000 worldwide employees as of late 2023 who could be affected. Reuters reported that the layoffs are expected to be implemented by the end of the year. Samsung did not immediately respond to Investopedia's request for comment. The conglomerate -- which makes everything from smartphones to televisions -- has fallen behind some of its tech rivals, which have seen sales surge on demand for high-powered memory chips to drive artificial intelligence (AI) investments. Samsung's stock received a boost earlier this year when Nvidia (NVDA) Chief Executive Officer (CEO) Jensen Huang reportedly said the AI giant was testing Samsung's next-generation memory chips for possible use in its future graphics processing units (GPUs). Samsung also will get up to $6.4 billion in CHIPS and Science Act funding to expand its manufacturing facilities in Texas. Samsung shares closed 2% lower on the South Korean exchange Wednesday. They are down 17% this year.

Samsung To Reportedly Slash Global Workforce By Up To 30% In Certain Divisions Amid Intense Competition From Apple, Huawei - Samsung Electronics Co (OTC:SSNLF)

Samsung Electronics SSNLF, the world's top producer of smartphones, TVs, and memory chips, is reportedly planning to reduce its overseas workforce in some divisions by up to 30%. The South Korea-based tech giant has instructed its global subsidiaries to decrease sales and marketing staff by around 15% and administrative staff by up to 30%. What Happened: The job reductions, expected to be executed by the end of the year, will impact jobs across the Americas, Europe, Asia, and Africa, Reuters reported on Wednesday. However, the exact number of employees to be laid off and the countries and business units to be most affected remain uncertain. Samsung clarified that these workforce adjustments are routine and aimed at improving efficiency, with no specific targets and no impact on production staff. As of 2023's end, Samsung had a total of 267,800 employees, with over half, or 147,000 employees, based overseas. The company's India operation, which employs around 25,000 people, could see up to 1,000 job cuts. In China, about 30% of the sales operation workforce is expected to be affected. Samsung has yet to respond to Benzinga's queries. See Also: Nvidia Shares Riding On Huge AI Tailwind, Says Portfolio Strategist: Why Expert Says Stock Will Stay On An Upward Path For Next 2-3 Years Why It Matters: The job cuts come at a time when Samsung is grappling with mounting pressure on its key units. Its chip business has been slower than its rivals in bouncing back from an industry slump that pushed its profit to a 15-year low last year. In the premium smartphone market, Samsung is facing fierce competition from Apple Inc. AAPLand China's Huawei. The job cuts are viewed as a strategy to brace for a slowdown in global demand for tech products and to strengthen its bottom line by cutting costs. These layoffs follow recent reports of declining sales and intensifying market competition in India, where the company's value and volume market share have hit their lowest in a decade, prompting the company to reportedly gear up for layoffs. Additionally, earlier this year, employees at Samsung Electronics initiated a three-day strike demanding better pay, warning of additional actions if their demands were not met. Read Next: Mark Cuban Says Kamala Harris Is Simply Doing What Trump Did In 2016: 'It's Her Party. She Gets To Set The Rules' Image via Shutterstock This story was generated using Benzinga Neuro and edited by Pooja Rajkumari Market News and Data brought to you by Benzinga APIs

Samsung Laying Off Thousands in Global Cuts Despite AI Chip Boom

Samsung is starting to lay off staff globally, impacting up to 30% of employees in some divisions by the end of this year, according to three sources familiar with the scope of the layoffs, Reuters reports Wednesday. Sales and marketing departments are reportedly being reduced by 15%, while up to 30% of administrative staff are expected to be laid off. Samsung has about 25,000 sales and marketing staff, according to the report, meaning over 3,700 employees may be included in the layoffs. Half a dozen other sources confirmed the global layoffs at Samsung more broadly, which are expected to impact staff across Samsung divisions in the Americas, Europe, Asia, and Africa. Samsung has nearly 270,000 employees globally across 76 countries, according to its website, citing data from late last year. Some staff in China and India will be losing their jobs, impacting up to 1,000 people in India alone, a source told the outlet. Samsung began notifying employees about three weeks ago. Earlier this year, Samsung, which is headquartered in South Korea, reportedly imposed six-day workweeks for its executives to combat what it believes to be a financial "crisis" at the company. Samsung is still profitable, however, despite seeing a dramatic fall in quarterly operating profits from late 2022 until the end of 2023 and not having a great year overall last year. Samsung reported operating profits of $4.9 billion last fiscal year, per data on its website, and saw a 900% spike in profits earlier this year in part due to chip demand spurred by a global surge in artificial intelligence development and training. In May, Samsung replaced its chief chip executive to oversee its semiconductor business and try to rebound from its financial struggles. Company stock is down about 8% in the past year, though it's still up nearly 38% in the past five years. Samsung tells Reuters that its layoffs are routine, however, and part of its plan to become a more efficient company. Samsung has not responded to PCMag's request for comment.

Samsung faces strikes in India, reports of global layoffs

Union alleges work conditions are like solitary confinement and violence is common at Tamil Nadu plant Workers at a Samsung Electronics plant in the Indian state of Tamil Nadu have been on strike since Monday, disrupting production as they fight for wage hikes, better hours, and an end to a no-union policy. The plant, located in the Kanchipuram district has been in operation for 16 years and employs 1,700 workers - only 60 of whom are women. "For 16 years these workers have been without a registered union. Attitude, bureaucratism, abusive practices and workload impositions of the current management have prompted the workers to unionize," the Centre of Indian Trade Unions (CITU) wrote in a statement [PDF]. On Facebook, CITU labelled Samsung's opposition to unions "draconian." Many of the workers at the facility reportedly have not shown up for work. Some are instead protesting in front of the facility, causing production to fall by half on Monday. On Tuesday, production was reportedly down by 30 percent. The facility reportedly makes products such as televisions, refrigerators and washing machines, and contributes between 20 and 30 percent of Samsung's annual India revenue - a figure which totals $12 billion. The region's union leader, E Muthukumar, has reportedly pledged the strike will go on until a settlement is reached - and at least until scheduled Friday night talks. Senior execs have travelled to India to engage with the workers. Samsung operates two plants in India - a larger one that focuses on smartphone manufacturing is located in Noida. The chaebol has told other media outlets it actively engages with workers to address any grievances they may have, and complies with all laws and regulations. "We will also ensure that there is no disruption to our consumers," Samsung promised. The manufacturing giant has faced strikes in other countries as well. In July and August, workers in South Korea went on the most polite strike ever, using their own holiday time to stop work. More aggressive measures followed, including Samsung's first ever walk-out. The union pledged that the strike would go on indefinitely, but eventually told its members to return to work when negotiations broke down. While it deals with its Indian troubles, Samsung is also reportedly prepping for sweeping global layoffs that could see staff numbers reduced by up to 30 percent in certain departments. Unnamed Samsung insiders told newswire Reuters that the cuts will allegedly take place by the end of this year and would affect jobs globally. The outfit has allegedly already directed subsidiaries to reduce sales and marketing staff by 15 percent, and administrative employees by up to 30 percent. The report doesn't make it clear how many employees will be affected, or what sort of workers are at risk. It is unclear why Samsung - which is riding high amid the AI chip boom and recording booming profits - would choose to shed some of its 260,000-strong global workforce. According to sources who spoke to Reuters, job cuts will shore up Samsung's bottom line and reduce costs ahead of an expected global economic slowdown. Samsung claimed the layoffs are just routine workforce adjustments aimed at improving business efficiency, no particular roles are being targeted, and production staff won't be impacted. Tech industry layoffs have continued to make headlines in 2024, with many high-profile companies shedding staff despite posting record financial results. It's not clear if that's what's happening at Samsung. We've contacted the firm's reps with questions for this story, but have not received a response at the time of writing. ®