(9 days left!) Be the first with a 200MP camera! Visit Samsung to reserve and gain $100 in Samsung credit!

SamMobile has affiliate and sponsored partnerships. If you buy something through one of these links, we may earn a commission. Learn more.

Employees at Samsung’s mobile division fear job cuts and lost bonuses

Phone
By 

Last updated: October 19th, 2016 at 17:59 UTC+02:00

Samsung’s mobile division is the Samsung Group’s cash cow as it accounts for nearly 70 percent of the conglomerate’s revenues which is why people who work in this division are often envied by their colleagues in other Samsung divisions. They were the ones who usually got hefty salaries and bonuses as the Group handsomely rewarded them for lifting Samsung’s brand to new heights. Now the over 26,000 employees who work in this division are being deemed responsible for what’s possibly the worst crisis in the nearly five-decade history of Samsung Electronics. Employees reportedly describe a sense of gloom in the division as the entire Galaxy Note 7 episode has turned out to be tragic and sad.

Samsung Electronics is going to take a $5.3 billion hit on the Galaxy Note 7 and the division is likely to be held accountable. Employees often received bonuses there were around half of the base salary and they now believe that no bonuses might be doled out this year. Some senior executives are likely to be sent packing as well, even division head D.J. Koh, though Samsung hasn’t given any indication that heads will roll for the Galaxy Note 7 fiasco.

Samsung’s rapid success in the global mobile market contributed to the increasing influence of Samsung Electronics. The mobile division only accounted for 27 percent of its revenue in 2010 and the number surged to 61 percent in 2013. This led to a shift in dynamics at Samsung. Mobile division employees became big customers for other Samsung divisions as they bought copious amounts of chips, display panels and other components. Their attitudes reportedly changed too, with mobile division employees acting like bosses and pushing workers to meet tighter deadlines. They also used to have the upper hand in price negotiations. When bonuses were given out, many employees in other divisions grumbled among themselves that their colleagues got more even though mobile profits were coming down.

However, Samsung denies that its mobile unit became more powerful over other units. In a statement, the company said that “Samsung manages its supply chain based on fair and transparent policies and actively supports suppliers to establish mid- and long-term partnerships with them.”

Several employees mentioned in the report say that many are worried about who will be held responsible for the entire Galaxy Note 7 debacle. Workers just want it to be resolved so that they can go back to doing their jobs without having doubts about their position. They do say that this has pushed them to do some soul searching inside the company as it has been a very big and very expensive lesson for Samsung Electronics. There’s all the more reason for Samsung to ensure that something like this never happens again. “We are strongly committed to determining and addressing the cause and to taking any and all necessary steps to ensure this never happens again,” the company reiterated in a statement.

Source Phone Galaxy Note 7Galaxy Note 7 recallSamsung Electronics
Load 1 comments

You might also like

Samsung’s new move could make screen replacements costlier in the US

Samsung Display is trying to stop imports of third-party OLED screen replacements for smartphones in the US. The South Korean firm has filed a request with the ITC (International Trade Commission) to investigate the import of third-party smartphone OLED panels for independent repair stores. And this could strike a massive blow to the entire repair […]

  • By Asif Iqbal Shaik
  • 10 hours ago

Samsung signs multi-year 5G patent deal with Nokia

Samsung, the biggest smartphone brand in the world, has signed a multi-year 5G patent agreement with Nokia. As a part of this long-term agreement, the South Korean firm will use Nokia’s fundamental inventions in 5G and other technologies in its smartphones and other mobile devices. Samsung Electronics will make royalty payments to Nokia for its […]

  • By Asif Iqbal Shaik
  • 2 days ago

Samsung launches 4TB version of T7 Shield SSD

Samsung launched the T7 Shield portable SSD eight months ago, and back then, the company made the SSD available in 1TB and 2TB storage capacities. Now, the South Korean firm has launched the 4TB version of the T7 Shield SSD in Germany. The T7 Shield is launching in Germany and will be available in three […]

  • By Asif Iqbal Shaik
  • 6 days ago

Samsung’s World Expo 2030 ad in Switzerland targets 2,700 leaders and top officials

Samsung’s efforts to bring World Expo 2030 to Busan, South Korea, have not ended. And in its latest bid to host the upcoming Expo, the company installed a large digital outdoor advertisement in Davos, Switzerland, right around the celebration of the annual meeting of the World Economic Forum, held between January 16 and the 20th […]

  • By Mihai Matei
  • 6 days ago

Samsung x Ledger bundle announced, may include the Galaxy S23

Samsung Germany and crypto hardware wallet manufacturer Ledger have announced a new partnership with a shared goal: to enable easy and safe buying, selling, and trading on Web3. The two companies have announced the Web3 Starter Bundle, which will go live through Amazon and includes next-generation Samsung Galaxy devices and Ledger hardware wallets. Web3 might […]

  • By Mihai Matei
  • 6 days ago

Samsung was world’s biggest smartphone brand in 2022 as Chinese brands suffered

2022 has been an unpleasant year for smartphone brands. Rising component prices, geopolitical tensions, and supply chain issues troubled all smartphone brands. The overall market dropped 17% in Q4 2022. However, two smartphone brands managed to increase their market share: Apple and Samsung. According to a report from market research firm Canalys, Samsung was the […]

  • By Asif Iqbal Shaik
  • 7 days ago