Samsung is preparing to cut 10% of workers (nearly 10,000 employees) at its headquarters, as its smartphone business stumbles due to strong competition from the iPhone and Chinese vendors, reports Bloomberg.
Samsung is targeting workers in the human resources, public relations and finance departments, Korea Economic Daily reported Tuesday, citing people it didn’t identify. The Suwon, South Korea-based company also plans to cut some expenses next year, the report added. Samsung declined to comment in an e-mail.
The moves comes after five months of declines in Galaxy smartphone sales and drop of $40 billion in Samsung's market value. The company's share of smartphone shipments fell 3% in the second quarter of 2015 and it's no longer the top vendor in China.
“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 Inc. “Samsung’s preparing to tighten its belt as it isn’t likely see rapid profit growth in the years to come.”
Samsung had 98,999 employees at its headquarters as of June 30th.
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Samsung is targeting workers in the human resources, public relations and finance departments, Korea Economic Daily reported Tuesday, citing people it didn’t identify. The Suwon, South Korea-based company also plans to cut some expenses next year, the report added. Samsung declined to comment in an e-mail.
The moves comes after five months of declines in Galaxy smartphone sales and drop of $40 billion in Samsung's market value. The company's share of smartphone shipments fell 3% in the second quarter of 2015 and it's no longer the top vendor in China.
“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 Inc. “Samsung’s preparing to tighten its belt as it isn’t likely see rapid profit growth in the years to come.”
Samsung had 98,999 employees at its headquarters as of June 30th.
Read More
Read More