ALBAWABA - Samsung Electronics, the South Korean multinational major appliance and consumer electronics corporation, announced it will reduce its workforce in select departments by 30% by the end of 2024 in aims to keep up with global competition.
Samsung reduces workforce
According to Reuters, the world's largest manufacturer of smartphones, televisions, and memory chips informed its subsidiaries globally to reduce their sales and marketing workforce by about 15% and administrative staff by up to 30%. This new law will be implemented by the end of 2024 and will apply to employees in the Americas, Europe, Asia, and Africa.
On the other hand, Samsung has not officially disclosed the total number of layoffs or specified the exact countries and units affected. The company said the new decision aims to improve efficiency and cope with competition globally.
This new law will be implemented by the end of 2024 and will apply to employees in the Americas, Europe, Asia, and Africa. (Shutterstock)
It is worth noting that by the end of 2023, Samsung employed approximately 267,800 people globally. Most of these employees work in manufacturing and development areas, 25,100 in sales and marketing, and 27,800 in various other departments.
The layoff decision will be implemented as Samsung is currently facing increasing pressure on its key units, global competition from its rivals, declining profits, slow demand for technology products, and a slow global economy.
Meanwhile, Samsung’s shares fell significantly on Wednesday, analysts anticipate a weak recovery for the company as the demand for smartphones and personal computers are declining by the minute.
