Samsung Electronics, the global leader in smartphones, TVs, and memory chips, is set to reduce its workforce by as much as 30% in some overseas divisions. According to a Reuters report, the South Korean tech giant has instructed its subsidiaries worldwide to make substantial cuts, targeting a 15% reduction in sales and marketing personnel and up to 30% in administrative staff. These reductions will impact employees across key regions, including the Americas, Europe, Asia, and Africa, and are expected to be completed by the end of the year.
Samsung has confirmed that workforce adjustments are indeed happening but described these changes as part of routine operations aimed at enhancing efficiency. While the company declined to provide specific details about the scope of the layoffs, it clarified that no production staff would be affected. With Samsung employing over 267,000 people globally, including 147,000 in international operations, the cuts will primarily affect sales, marketing, and administrative staff. According to Samsung’s sustainability report, around 25,100 employees work in sales and marketing, while 27,800 staff are involved in other non-production areas.
Some of the earliest signs of the workforce reduction have already appeared in countries like India and China. In India, where Samsung employs around 25,000 people, severance packages have been offered to some mid-level employees, with up to 1,000 jobs expected to be affected. Similarly, in China, local media reports suggest that Samsung plans to cut around 30% of its sales operation staff in the region.
Samsung’s decision to trim its global workforce comes as the company grapples with mounting challenges in several key business sectors. The company’s semiconductor division, once its most profitable arm, has been slower to recover from a global downturn in the chip industry compared to its rivals, resulting in a significant hit to profits. In May, Samsung made leadership changes within its semiconductor division to address these issues and compete more effectively with competitors like SK Hynix and Taiwan’s TSMC.
In addition to the struggles in its chip business, Samsung is facing stiff competition in the premium smartphone market from Apple and Huawei, and production issues in India have also added pressure. Amid these headwinds, the company’s decision to cut jobs appears to be a cost-saving measure in response to slowing global demand for technology products as the economy weakens.
While the company plans significant layoffs abroad, the situation is more complicated in its home country. As one of South Korea’s largest employers and an integral part of its economy, Samsung Group’s decisions regarding layoffs are politically sensitive. As a result, any cuts within South Korea itself are expected to be far more limited or face significant resistance.
With the job cuts in progress, Samsung’s focus remains on cost optimization and maintaining its competitive edge in a challenging global environment. How the company navigates these workforce reductions while managing its global operations will be crucial in its bid to stay ahead in the fast-evolving tech landscape.
