Samsung Electronics, a leading smartphone and memory chip maker, will cut up to 30% of its overseas staff at some divisions, three sources with direct knowledge of the matter told Reuters. According to sources, Samsung is bracing to shed up to 15% of its marketing staff and 30% of its administrative personnel. Samsung intends to action these job cuts by the end of 2024, impacting employees across the Americas, Europe, Asia, and Africa.
Due to the sensitive nature of this information, exact numbers on how many people Samsung will let go and which business units will take the greatest hits still remain unknown. In a statement, Samsung described the recent workforce adjustments at certain international operations as routine measures intended to enhance efficiency. The company clarified that there are no specific targets associated with these adjustments and emphasized that they do not affect its production staff. In a recent sustainability report, Samsung stated that it employed a total of 267,800 people as of the end of 2023, and more than half, or 147,000 employees, are based overseas.
A direct source told Reuters that 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. The Indian unit is likely to let go of up to 1,000 employees, the source added. Samsung employs upwards of 25,000 people in India alone. A South Korean newspaper informed readers that Samsung has notified its employees of job cuts that will trim up to 30% of the sales operations team in China.
Another source familiar with job cuts at Samsung revealed that job cuts serve as a preventive measure as the global demand for technology products dampens. Job cuts in Samsung’s headquarters in South Korea remain unclear, as conglomerate Samsung Group stands as the country’s biggest employer and plays a key role in its economy. Job cuts might also provoke labor unrest domestically. Recently, a South Korean workers’ union at Samsung Electronics staged a multi-day strike, calling for increased wages and improved benefits.
On Wednesday, shares of Samsung Electronics, South Korea’s most valuable stock, reached their lowest point in 16 months. This decline follows recent adjustments by some analysts who have lowered their profit forecasts for the company, attributing the changes to a sluggish rebound in demand for smartphones and personal computers.
