Samsung Reported to Cut Its Executive Staff by 200 Personnel

Omar Sohail
Posted Oct 22, 2016
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Thanks to the torrent of fire accidents the Galaxy Note 7 was causing, Samsung had no choice but to remove it from the production line. According to the latest report, the Note 7 fiasco has also forced the company to make some changes to its executive employee lineup and it looks like around 20 percent of the entire executive staff is going to be removed.

Latest Report Claims That Samsung Is Going to Be Removing 200 Executive Employees From a Total of 1,000 Due to the Galaxy Note 7 Fiasco

According to a Samsung insider, he was quoted by local broadcaster MBC has having said the following:

“Samsung, which has launched the performance assessment of its executives from this month, plans to cut up to 20 percent of the entire executive strength.”

This means that out of 1,000 executives, the company could be laying off a total of 200 as a result of the Galaxy Note 7 crises. This isn’t the first time the company has taken such a step. Last year, Samsung laid off 129 executives and it looks like stricter rules are going to be applied to evaluate their performance for the rest of the year. According to sources close to the matter, Samsung’s mobile business division executives, as well as President Koh Dong-Jin are being held accountable for the Note 7 explosions.

The company was reported to be testing out Note 7 batteries in its own facilities, thus going against industry standards. One could say that in Samsung’s haste to announce its crown jewel ahead of the iPhone 7 and iPhone 7 Plus, thorough battery tests were not carried out, which has brought the company to a state of temporary despair. The company’s mobile division head also provided an apology as well as a statement to the public that he and Samsung will be doing everything in their power to find out the root cause of these explosions.

Samsung Has Suspended Galaxy Note 7 Production and Sales Until Further Notice

However, it doesn’t look like the South Korean manufacturer is going to be kind to its executives, which could have negative ramifications in the future. One Samsung source, who has not been named has stated that dismissing the President will drop the morale level of executives:

“It is just one year since Koh started leading the mobile business, and dismissing him could undermine the morale of other executives and put too much pressure on his successor.”

Samsung is slated to announce its Galaxy S8 at a much earlier release date, so let us hope that the company’s efforts and foresightedness reward it well in the future.

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