Samsung Electronics is set to reduce its global workforce by up to 30% by the end of 2024, primarily affecting sales, marketing, and administrative staff across various regions including the Americas, Europe, Asia, and Africa. According to sources cited by Reuters, these cuts aim to improve efficiency amid declining tech demand.
At the end of 2023, Samsung had 2.6 lakh employees. If they fire 30%, then around 80,000 employees can be asked to go.
Samsung, the world’s largest producer of smartphones and memory chips, confirmed that these workforce adjustments are routine, with no specific targets for the cuts. The reductions will not affect production staff. Currently, Samsung employs about 267,800 people worldwide, with 25,100 in sales and marketing, and 27,800 in administrative roles.
The company is facing several challenges, including slow recovery in its chip business, which led to a 15-year low in profits last year. It also faces heightened competition from Apple in the smartphone market and SK Hynix in the memory chip sector. In India, up to 1,000 mid-level employees are expected to be affected by severance packages, while reports from China indicate a 30% reduction in sales staff.
This move comes as Samsung prepares for a potential slowdown in global demand for tech products, compounded by labour unrest in South Korea. Shares in the company have hit a 16-month low, as analysts lower profit expectations amid weak demand for smartphones and PCs.
