Samsung's facing a lot of crises and the company has unable to chart a clear path forward, particularly in the semiconductor market, where its foundry is lagging behind, its next-gen memory products are struggling to compete against SK Hynix, and legacy products are under pressure from Chinese companies.
The company does a significant employee reshuffle across the entire organization every year. The process has started a bit earlier this time around as there's very much a sense of urgency to improve things. The reshuffle has reportedly seen some senior executives being fired as well.
Samsung's firing people to fix its issues
There's a lot of focus on the DS (Device Solutions) division which operates the semiconductor business, during this reshuffle. It's no secret that the division's performance has been underwhelming as of late and Samsung feels that a major organizational overhaul is necessary now.
This has reportedly involved Samsung Electronics telling several senior executives at the division that they've been fired. Some business managers are likely to be replaced amid a major reshuffle which will see many employees being rotated out of the division and fresh talent being brought in from other divisions of the organization.
Market observers also point to the possibility of Samsung Electric CEO Jang Deok-hyun, DS VP an Jin-man, and CTO Semiconductor Research Institute Song Jae-hyuk being rotated out of their positions. This goes to show the importance that Samsung attaches to an organizational overhaul to restore the division's fundamental competitiveness.
Samsung Electronics Chairman Jay Y. Lee has publicly acknowledged the conglomerate's ongoing battles while expressing confidence that the company has want it takes to turn things around. Clearly an infusion of fresh talent into some of its most crucial business segments is seen as a necessary step to spark substantial growth.
