Samsung Electronics is reportedly planning staff reductions across its global operations, with divisions in various regions expected to experience cuts by the end of the year.
According to sources familiar with the matter, the South Korean tech giant has issued directives to its subsidiaries worldwide, instructing them to reduce their sales and marketing workforce by around 15%, while administrative roles could face cuts of up to 30%.
These reductions will impact employees in regions spanning the Americas, Europe, Asia, and Africa, although precise details regarding the total number of affected workers or specific countries is not yet known.
Despite the scope of the job cuts, Samsung has stated that the adjustments are part of routine efforts to improve operational efficiency and are not targeting its production staff. The company clarified that no specific targets have been set for the layoffs.
As of the end of 2023, Samsung employed 267,800 individuals globally, with over 147,000 of them working overseas, according to its latest sustainability report. The majority of these employees are involved in manufacturing and development, while a significant portion — approximately 25,100 — work in sales and marketing.
In recent weeks, reports have revealed the impact on Samsung’s India operations, where the company has already begun offering severance packages to some mid-level staff.
The total number of employees expected to leave the India division may reach 1,000, although the exact figure remains uncertain. Additionally, sources have disclosed that 30% of employees in Samsung’s sales operation in China may also face job losses.
Samsung’s decision to reduce its workforce comes amid challenges faced by its key business segments. The company’s semiconductor division has struggled to recover from a downturn in the industry, which pushed profits to a 15-year low last year.
In response, Samsung recently replaced the head of its semiconductor unit in an effort to address the “chip crisis” and improve its competitive standing against rivals like SK Hynix in the race to supply high-end memory chips.
Meanwhile, Samsung’s position in the premium smartphone market remains under pressure, with competitors such as Apple and Huawei posing stiff competition. In the contract chip manufacturing space, Samsung has consistently lagged behind Taiwan Semiconductor Manufacturing Company (TSMC).
Adding to the company’s difficulties, labour unrest in India has affected production, with a recent strike over wages disrupting operations in a market that generates around $12 billion in annual revenue for the company.
Industry insiders reveal that Samsung’s job cuts are partly in response to an anticipated slowdown in global demand for technology products, with the company aiming to reduce costs and shore up its financial performance.
While the job cuts are being rolled out across various regions, it remains uncertain whether Samsung will implement similar measures in its home country of South Korea, where workforce reductions can be politically sensitive due to the company’s central role in the economy.
This trend of downsizing among global technology companies has over the past year seen several major firms, including Microsoft, Cisco, and Amazon Web Services (AWS), laying off staff as part of cost-cutting measures due to challenging economic issues.
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