The sources requested anonymity, citing the confidentiality of the plans. In a statement, Samsung described the workforce adjustments at overseas operations as routine, aimed at improving efficiency. The company noted that no specific targets are in place, and the reductions do not affect production staff.
As of the end of 2023, Samsung employed 267,800 people, with more than half – 147,000 – based overseas, according to its reports. Most of these jobs are in manufacturing and development, with approximately 25,100 in sales and marketing and 27,800 in other roles.
Samsung’s “global mandate” for job cuts was issued about three weeks ago, with its India unit already offering severance packages to some mid-level employees, one source said. Up to 1,000 employees may be impacted in India, where Samsung employs around 25,000 people. Meanwhile, in China, the company has informed staff that about 30% of its sales operation employees will be laid off, according to a South Korean newspaper report.
The job cuts come as Samsung faces increasing challenges across its key business units. Its semiconductor division, a crucial revenue driver, has been slow to recover from an industry downturn that led to a 15-year low in profits last year. In May, Samsung replaced the head of its semiconductor unit as part of its effort to overcome a “chip crisis” and compete with smaller rival SK Hynix in providing advanced memory chips for AI applications.
In the premium smartphone market, Samsung is battling fierce competition from Apple and Huawei, while it continues to trail TSMC in contract chip manufacturing. Additionally, a wage-related strike in India, which generates around $12 billion in annual revenue for Samsung, has disrupted production there.
One source indicated the job cuts are a preemptive measure to brace for a potential slowdown in global demand for tech products amid a weakening global economy. Another source suggested Samsung is aiming to strengthen its bottom line by cutting costs.
As cynical as it sounds, it was clear that this day would come. But hey, look on the bright side: Elon Musk laid off an enormous crowd from Twitter when he took over… and the social media platform is alive and kicking!
