Be the first, order the brand new Galaxy S24 FE, Galaxy Tab S10 Ultra, order the KING Galaxy S24 Ultra!

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

News For You
News For You
Notifications

Samsung employees received smaller salary hikes this year

Business
By 

Last updated: April 18th, 2023 at 08:06 UTC+02:00

In 2022, Samsung hiked the average salaries of its employees by 9%, which was the highest in a decade. This year, however, things aren't looking as good. In fact, they are bad. According to a new report from South Korea, Samsung has announced an average salary hike of 4.1% for its employees for 2023, which is less than half compared to last year. That's not all, though. The company has also decided to offer no salary hike to board members this year.

The drop in average salary hike is a direct result of the company's poor performance in the last quarter due to the global economic recession. Samsung is expecting an operating profit of KRW 600 billion (around $454.9 million) in Q1 2023, significantly lower than the operating profit of KRW 14.12 trillion (around $10.7 billion) that the company posted in Q1 2022. Samsung will witness this lowest operating profit in the last fourteen years.

Samsung's terrible performance in Q1 2023 resulted in lower salary hikes for employees

According to the report, the Korean tech giant reached an agreement with representatives of its employees earlier today. Along with the average salary hike of 4.1%, the company has shortened working hours for pregnant employees. However, exact details on this matter are scarce at the moment. Reportedly, the company planned to hike the board members' average salaries by 17%, but since financials are currently poor, Samsung dropped the ball on that one.

Unionized workers at Samsung account for 4% of the total workforce of 1,10,000 employees and have been negotiating wages with the company since late last year. There have been ten rounds of negotiation meetings so far, but they still haven't ironed out their differences. Samsung said, “We will discuss measures to boost workers' morale when the management environment improves” and added that it would “sincerely engage” in negation with the labor union.

Business Samsung Electronics
Galaxy AI summarized

Scroll for more related content
News For You

You might also like

Samsung maintains Global Top 5 brand status for 5th year in a row

Samsung maintains Global Top 5 brand status for 5th year in a row

Despite Samsung Electronics going through a rough patch and having to apologize to investors, customers, and employees, not everything the company did this year was questionable. The tech giants launched some amazing products and led several initiatives and tech advancements. For these reasons, the global brand consultancy firm Interbrand recognized Samsung as a Global Top […]

  • By Mihai Matei
  • 4 days ago
Samsung improves global tablet shipments as market grows

Samsung improves global tablet shipments as market grows

New data from market watchers says Samsung maintained its position in the global tablet market, but the company improved year-on-year sales significantly. In fact, according to data from Counterpoint Research, every major tablet brand improved their year-on-year shipments in Q2 2024 compared to a year ago. The tablet market appears to be in a healthy […]

  • By Mihai Matei
  • 5 days ago
Samsung digital influencer Sam gains real AI skills for a video game

Samsung digital influencer Sam gains real AI skills for a video game

Do you remember Sam? The so-called “digital influencer” Samsung created in collaboration with Cheil and Brazillian design firm Lightfarm a few years ago? I'm sure some of you do, but if the name doesn't ring a bell, here's a quick rundown: Sam is the virtual 3D model of a jack-of-all-trades woman that Samsung employs to […]

  • By Mihai Matei
  • 5 days ago
Samsung apologizes to everyone and vows to do better

Samsung apologizes to everyone and vows to do better

Lately, Samsung Electronics has been in the news headlines too often for the wrong reasons. Workers are striking, the company is losing key semiconductor clients, the mass production roadmap for the Texas chip factory got pushed back to 2026, the public One UI 7.0 update isn't coming this year, and more and more people are […]

  • By Mihai Matei
  • 6 days ago
Samsung Foundry ‘hungry to grow the business’, won’t spin off

Samsung Foundry ‘hungry to grow the business’, won’t spin off

A few days ago, executives representing Samsung's financial division, i.e., Samsung Securities, suggested that the tech conglomerate could spin off the Foundry and System LSI divisions and list them on the US stock market. The chief of Samsung Electronics has now responded, saying that the spin-offs are not in the cards. Market watchers expect Samsung's […]

  • By Mihai Matei
  • 1 week ago
Samsung may lay off 10% of workforce in Southeast Asia and Australia

Samsung may lay off 10% of workforce in Southeast Asia and Australia

Samsung has had a few macro-level struggles lately, from poor Foundry performance that could lead to a company spin-off to workers in India going on strike for higher wages. While all this is developing, Samsung is reportedly laying off more workers in Southeast Asia and Australia. According to a Bloomberg article (via Business Korea), Samsung […]

  • By Mihai Matei
  • 2 weeks ago