Reuters: Samsung to lay off 15 to 30 percent of staff
The world’s largest manufacturer of smartphones, televisions and other equipment, Samsung Electronics, is planning to cut up to 30 percent of its employees by the end of 2024. This was reported by Reuters citing sources within the company.
The South Korean tech giant is cutting its sales and marketing staff by 15 percent and its administrative staff by 30 percent.
At the same time, according to the latest report from Samsung, at the end of 2023, a total of 267,800 people worked there. Almost half, 147,000, worked abroad. Most of them were engaged in production and development. As for the sales and marketing segment, we are talking about 25,100 people.
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The publication notes that the planned layoffs may be due to the fact that the company, which has suffered a serious downturn and a drop in profits to a 15-year low, is recovering more slowly than its competitors. The latter primarily include Apple and Huawei. In addition, Samsung has encountered problems with production in India, where workers are striking over wage issues.
Samsung Electronics shares traded at their lowest level in 16 months on Sept. 11. Analysts cut their profit estimates for the company, citing a weak recovery in demand for smartphones and personal computers.
Earlier, it was reported that Samsung Electronics shares lost more than three percent of their price after the world’s largest chip maker Nvidia fell. Semiconductor industry shares also fell: Renesas Electronics by 8.50 percent, Tokyo Electron by 8.55 percent, and Advantest by 7.74 percent. In South Korea, Kospi shares fell by 3.15 percent.
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