Samsung to Slash Jobs Worldwide Amid Falling Sales
The job cutting will be seen across various departments like sales, operations, and marketing.
South Korean multinational manufacturing conglomerate Samsung is laying off employees amid a fall in the company’s volume and market share.
The company had been registering a decline in its sales performance, hitting the lowest in a decade, according to a report from Moneycontrol.
The job cutting will be seen across various departments like sales, operations, and marketing. It is expected that job cuts could be as high as 20 percent in India.
According to some reports, Samsung is currently restructuring across various businesses such as consumer electronics, smartphones, and home appliances business.
This restructuring may lead to the exit of some of the key executives. Samsung also stopped new recruitment of executives who voluntarily left their roles. It may also cut down the off-roll employee count.
According to the spokesperson of Samsung, to improve the company’s performance and increase its market competitiveness, Samsung is in the process of reorganising its workforce to increase its market competitiveness.
Interestingly, the layoff decision has come at a time when the workers in Samsung’s Chennai manufacturing factory are on an indefinite strike.
The strike has impacted the company’s production of home appliances.
Sources also say that the Korean company has summoned its Indian team to South Korea to discuss various issues, including ongoing restructuring efforts.
The company is facing severe competition from Chinese brands like Xiomi and Vivo and other issues like the exit of crucial sales and marketing executives.
In the past few quarters, it lost around 30 senior executives in various departments, who moved to Xiaomi, and many expected to leave soon.
Samsung is also facing issues with offline retailers when it comes to profit margins, competition from Chinese brands, and lack of availability of stock of popular models in brick-and-mortar stores.
According to market research firms IDC, Canalys, and Counterpoint, Samsung’s market share value declined to 16 per cent from 23 per cent in the previous quarter and 21 percent in a year
