Samsung Electronics plans to reduce its global workforce by up to 30%, affecting various divisions including sales, marketing, and administrative staff, according to Reuters. The job cuts will impact regions such as the Americas, Europe, Asia, and Africa, with the reduction expected to be finalised by year-end.
The company, a leading producer of smartphones, TVs, and memory chips, stated that these workforce adjustments are routine and aimed at improving efficiency. Production staff will remain unaffected, and no specific targets for job cuts have been set.
Samsung, which employs around 267,800 people worldwide, has over half of its staff based overseas. Its sales and marketing teams include about 25,100 employees, while administrative roles account for 27,800, according to its latest sustainability report.
This decision comes as Samsung contends with challenges including a sluggish recovery in its chip business, which hit a 15-year low in profits last year. Increased competition from rivals such as Apple and SK Hynix has also put pressure on the company.
In India, Samsung is offering severance packages to mid-level employees, with up to 1,000 positions expected to be affected. In China, the company plans to cut around 30% of its sales staff.
The cuts are part of Samsung's strategy to prepare for a potential slowdown in global tech demand amid economic uncertainties. While it is unclear if similar reductions will occur at Samsung’s South Korean headquarters, the company is currently dealing with labour unrest there, including a recent strike by a workers' union demanding higher wages.
Shares in Samsung Electronics have fallen to a 16-month low, with analysts revising profit forecasts downward due to weak demand for smartphones and personal computers.
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