Samsung will reduce its sales and marketing staff, and administrative staff substantially to increase efficiency.
Thousands of job cuts ahead in Samsung as the company aims to improve efficiency
2024 has seen massive job layoffs in various sectors but the IT sector is one of the most impacted ones. From Intel cutting its workforce by around 10,000 employees to Microsoft's layoffs in the Xbox department, a lot of people have lost their jobs this year. Samsung is next, which is reported to reduce its staff by up to 1/3rd the total workforce in specific departments.
As reported by Reuters, the company is about to lay off about 15% of staff in sales and marketing and up to 30% of staff in the administrative department at the end of this year. As per the source, the report has been confirmed by several sources, which refused to be named to due the confidential nature of this plan.
Samsung will introduce the layoffs overseas and has already instructed its subsidiaries to implement the new plan before the end of 2024. The global mandate was sent three weeks ago, which has impacted Samsung India already. Many mid-level employees have lost their jobs and it's reported that about 200 executives have been laid off as the business has slowed down.
While the sales and marketing, and administrative staff are going to be affected drastically, the production staff won't see such implementation. Samsung has about 267,800 employees as of 2023 with over 50% of the staff overseas. As per calculation, this can result in over 25,000 people losing their jobs in the sales and marketing staff alone while another 27,800 employees will be laid off from other departments.
The company is one of the leading players in mobile phones, consumer electronics, and home appliance industries but since there is a poor demand this year, the company is witnessing market share loss. This is the major reason why Samsung doesn't want to keep a big workforce as before and it is estimated that India could see 1000 job layoffs alone.
Samsung has been struggling with its rivals such as Xiaomi and Vivo but as the competition between Samsung and Apple is growing fierce, the smartphone share of Samsung is seeing a noticeable decrease as Apple becomes more popular. While the overseas staff will see drastic job cuts, it's not yet clear whether this will also follow in South Korean headquarters as this is currently a politically sensitive issue.
News Source: Reuters
About the author: Sarfraz Khan is a hardware reporter with a focus on PC components and the builder community. With years of experience writing about PC hardware and laptops, his work has been featured on several reputable technology publications. Sarfraz's hands-on experience is demonstrated through his first-person accounts of using and comparing different hardware configurations, providing practical and relatable insights for everyday users. His technical analysis is respected by peers in the enthusiast community and has been cited by specialized hardware sites such as Germany's Igor's Lab.
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