The spending spree that consumers went on during the pandemic seems to be over now, and we are currently expecting a global recession as well. This means that the smartphone market has prepared for the economic downturn and Samsung is the first one to cave in as the company has scaled back smartphone production.
Samsung Gets Ready for Economic Recession by Cutting Down Smartphone Production
Although Samsung has made claims that it is expecting smartphone sales to stay flat or achieve single-digit growth in the second half of this year, things are not looking the same for the manufacturing plans in Vietnam. According to the report, the South Korean giant has cut smartphone production at its smartphone factory in Thai Nguyen. This plant is responsible for churning out 100 million smartphones every year. Combined, the two plants in Vietnam are responsible for producing half of Samsung's yearly output.
Various workers at the plant have claimed that some production lines are working just three days a week, compared to six days in the past. Some lines are just working four days a week. Of course, there does not seem to be any overtime involved, either. However, the source also claimed that it is not sure if Samsung is shifting some of the production outside of Vietnam, considering how the company does have production plants in other parts of the world, too.
Almost all the factory workers interviewed by the source have mentioned that the business is not good at all. This time last year, production was at its peak. However, things have changed a lot and some workers have claimed that they have never seen production be this low and there is a chance that there might be some job cuts, as well.
A lot of companies around the world are slowly getting ready for the recession and are already announcing cutdowns in order to be prepared for the recession that is going to impact almost all the companies.