~ MamakTalk ~: Samsung to cut 10% of office staff from its headquarters, analyst says

2015年9月8日星期二

Samsung to cut 10% of office staff from its headquarters, analyst says

Samsung is preparing to cut 10% of its office staff at its headquarters in Seoul, South Korea. While there isn’t official confirmation, this is allegedly because of losing smartphone sales to Apple and other Chinese vendors.

The Korean-based company is reportedly looking at specifically getting rid of human resources staff, public relations, and finance positions, according to the Korea Economic Daily. Samsung will further be looking to recoup costs by cutting expenses for 2016.

Samsung had 98,999 employees at its headquarters on June 30 of this year, according to a census report. In other words, Samsung could be cutting the jobs of around 9900 workers.

The tech giant unfortunately has failed to impress consumers with its high-end Galaxy smartphones for the most part of this year, ushering in a 5-month decline. This decline started in April, costing Samsung $40 billion in market value.

There isn’t much hope for the company to see an increase in profits either.

“Cutting jobs is the easiest way to control costs and Samsung’s spending on mobile business could also be more tightly controlled,” said Chung Chang Won, an analyst at Nomura Holdings in Seoul. “Samsung’s preparing to tighten its belt as it isn’t likely see rapid profit growth in the years to come.”

It’s hoped that recent devices like the Galaxy Note 5 and Galaxy S6 Edge+ will do well, but as more manufactures offer more appealing devices, the market competition will only increase. Aside from a premium look, there isn’t much incentive for consumers to purchase the Galaxy Note 5 and Galaxy S6 Edge+, which could potentially be very bad for the company’s profits this year.

It’s hoped that Samsung’s next flagship, what will allegedly be the Galaxy S7, will help turn things around.

Samsung will no doubt make an official statement when these job cuts officially take place.

source: Bloomberg Business

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