Samsung Electronics to cut up to 30% of overseas workforce amid global slowdown

Samsung Electronics is reportedly cutting up to 30% of its overseas workforce in certain divisions, according to a Reuters report on Sept. 11, citing sources. The move is seen as a measure to mitigate concerns over a global economic slowdown and to maximize profits through cost reduction. /News1

Samsung Electronics is set to cut up to 30% of its overseas workforce in certain divisions by the end of the year, a move aimed at addressing global economic concerns and boosting profits through cost-saving measures, according to sources cited by Reuters.

Two sources told Reuters that Samsung has instructed its global subsidiaries to reduce their sales and marketing staff by about 15%, while administrative employees could face cuts of up to 30%. According to the sources, Samsung’s plan is expected to be implemented by the end of this year and will impact jobs across the Americas, Europe, Asia, and Africa.

Reuters added that six more sources confirmed the company’s global layoffs. However, specific details, such as the number of employees affected or which countries and divisions would see the most impact, were not disclosed.

Samsung’s latest sustainability report revealed that by the end of 2023, the company had 267,800 employees worldwide. More than half of them—147,000—are based overseas. While the majority of these employees work in manufacturing and development, there are around 25,100 in sales and marketing roles, and approximately 27,800 in administrative positions.

One source noted that the directive to reduce global staffing levels was issued around three weeks ago. At Samsung’s India operations, some mid-level employees have already left in recent weeks, with the company offering severance packages. The source added that the total number of employees expected to leave the India division could reach 1,000. Samsung currently employs about 25,000 people in India.

Reuters noted that this restructuring comes amid growing pressure on Samsung’s core businesses. Profits from its flagship semiconductor division have plunged to a 15-year low due to last year’s downturn. Meanwhile, in the premium smartphone market, Samsung faces fierce competition from Apple and Huawei. In India, production has been disrupted by strikes over wage disputes.

In response, Samsung explained that the job cuts at some of its overseas offices are routine steps to improve efficiency. The company also clarified that there isn’t a set goal for how many jobs will be cut and that production workers won’t be affected.