Samsung rubbishes reports about workforce reduction

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It was being reported yesterday that Samsung was looking to reduce its headquarter workforce by 10 percent due to reduction in earnings. However, Samsung has rubbished those reports stating that it has no plans to reduce its workforce. The technology giant explained that it will only relocate a small portion of its workforce as opposed to reportedly reducing its management-related staff amid a slowdown. YonhapNews is reporting that a high-ranking official from Samsung Electronics said, “It will only be relocations of workers.

Samsung currently has about 320,000 employees worldwide, and about 100,000 them are employed in South Korea. The company didn’t provide any details about the number of personnel that are tasked with management-related duties, but the number is being estimated around 1,000.  The company went through a similar process last year by sending out management and support teams to mobile and consumer electronics division.

The company reported a decline of 37.5 percent in operating income of its flagship smartphone and tablet business to 2.76 trillion won in Q2 2015, and the company is facing severe competition from Apple as well as Chinese brands. Samsung misjudged the demand ratio for the Galaxy S6 and the Galaxy S6 edge earlier this year, ending up selling lower number of units of S6 edge and remained with unsold stock of the Galaxy S6. The company has decided to freeze the salaries of its employees for this year, and this is the first time since 2009 that the company has done that.

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ThaiM
2 years 3 months ago
ThaiM

Samsunk should let Apple buy them out. Then they’ll have reached their goals by being just like Apple.

nico2402
2 years 3 months ago
nico2402
hallo an alle ich bin ein großer samsung fan aber den schlechten verkauf vom s6 hat samsung richtig vermasselt ich habe das s6 edge und jetetzt mit dem neuen update lauft es erst richtig hohne das es eine heitzung wird und jetzut eine costum rom drauf und keine probleme mehr so hatte es am ersten tag sein mussen samsung solte doch mal entlich von andorid abschitt nehmen und mehr auf titzen setsen bei der gear 1 was ich auch habe mit android war der akku nach 1 tag lehr und mit titzen ca.4 tage und lauft ohne probleme also samsung… Read more »
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