Samsung reportedly will cut up to 30 percent of overseas staff in some divisions by the end of the year.
Three sources with knowledge of the matter told Reuters about the plan, and a further six people confirmed the company planned a global headcount reduction.
The South Korea-based electronics maker reportedly directed its subsidiaries to reduce sales and marketing staff by about 15 percent and administrative staff by up to 30 percent. The job cuts will happen across the Americas, Europe, Asia and Africa, though it’s not clear which regions or business units would be impacted the most.
However, in a statement to Reuters, Samsung said workforce adjustments were routine and aimed at improving efficiency.
The cuts come as the company faces pressure in key businesses. Reuters notes that Samsung’s chip business has been slow to recover from a recent industry downturn, and the company lags behind TSMC in contract chip manufacturing. Elsewhere, Samsung faces stiff competition in the smartphone market, and a recent strike in India disrupted production.
At the end of 2023, Samsung employed 267,800 people, roughly 147,000 of which were based overseas. It’s not clear if Samsung plans to cut jobs at its South Korean headquarters.
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Source: Reuters
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