Samsung is facing potentially drastic staff cuts. It has been reported that the South Korean technology giant could reduce its global workforce by up to 30 percent in certain areas. The reason for this appears to be the need to increase efficiency and better adapt to the current market situation.
Summary:
- Samsung plans to cut up to 30% of administrative staff worldwide.
- Marketing and sales departments could also be affected by a 15% reduction.
- The job cuts could affect all global markets, including Europe, Asia and America.
- Production employees will not be affected by the cuts.
Detailed information
Samsung currently employs over 267,800 people, more than half of whom work outside South Korea. The cuts primarily affect the administrative, marketing and sales departments. These areas have expanded significantly during the company’s growth phases in recent years. Now that the economic challenges are becoming greater and the markets are changing, the company is forced to adapt its internal structure.
Caschy’s blog, among others, reports that the structural adjustments will primarily involve large-scale job cuts. The aim of these measures is to increase efficiency in the long term. Despite solid profits in the past and continuous investment in future-oriented technologies, such as chip production, Samsung seems to have to react to pressure from the markets. This is probably not just about cost savings.
The electronics giant is also likely to be aiming to position itself better for future challenges in an increasingly competitive market. The sales and marketing departments in particular are to shrink by around 15 %, while up to 30 % of administrative jobs could be cut worldwide. However, it is unclear how many employees will actually be made redundant, as not all affected positions will necessarily be eliminated through layoffs – redeployment within the company is also possible.
Conclusion
Samsung’s planned measures are part of a larger restructuring in order to remain competitive in the long term. While the cuts in marketing and administration are noticeable, core production may remain untouched, which highlights the importance of these departments for the company. It remains to be seen how these job cuts will affect Samsung’s market position and ability to innovate.
