Samsung Electronics, a global leader in smartphones, TVs, and memory chips, is set to reduce its overseas workforce by up to 30% across certain divisions, according to sources familiar with the matter.
This move will affect sales and marketing positions by approximately 15% and administrative roles by up to 30%, according to Reuters.
The South Korean technology giant has instructed its global subsidiaries to implement these reductions by the end of the year, impacting employees across the Americas, Europe, Asia, and Africa.
Specific details on the number of affected employees and the exact locations remain sketchy.
In the report, Samsung characterized these workforce adjustments as routine measures aimed at enhancing operational efficiency, with no impact on its production staff.
The company employed 267,800 people as of the end of 2023, with over half, or 147,000, based overseas. Sales and marketing roles comprised around 25,100 positions, while administrative and other areas employed an additional 27,800 people.
According to the report, the company has already begun offering severance packages to mid-level employees in its India operations, where up to 1,000 positions may be affected.
It was gathered that staff in China are facing significant reductions, with reports indicating that up to 30% of employees in the sales division could be let go.
This decision comes as Samsung contends with ongoing challenges in its semiconductor business, which has been slower to recover from a downturn that led to a 15-year low in profits last year.
In response to these difficulties, Samsung in May replaced the head of its semiconductor division in an effort to address the ongoing “chip crisis” and compete more effectively with rivals such as SK Hynix in the high-end memory chip market.
One source indicated that these job cuts are part of Samsung’s strategy to prepare for a potential slowdown in global demand for technology products due to the broader economic downturn.
Another source noted that the reductions are aimed at cost-saving measures to bolster the company’s financial performance.
This move comes as Samsung faces mounting pressure in its semiconductor business, which has been slower to recover from a downturn that drove profits to a 15-year low last year
