Samsung Electronics Company is slashing thousands of jobs in Southeast Asia, Australia and New Zealand as part of a plan to reduce work force by firing several employees globally, said Bloomberg in its reports. The latest layoffs could affect around 10% person of the employees, however, the numbers for each subsidiary may vary, said one of the people.
Job cuts were planned for other overseas subsidiaries and could reach 10% in several markets, said a person familiar with the situation, reported Bloomberg. According to the latest sustainability report, the South Korea-based electronic company has about 147,000 employees worldwide, more than half of its total employees of 267,800. The company has not yet planned layoffs in its home market.
A person familiar with the matter told that Samsung Singapore staff were called individually by their managers on Tuesday, October 1, and informed of the retrenchment and severance package details. A Samsung spokesperson stated, “Some overseas subsidiaries are conducting routine workforce adjustments to improve operational efficiency.” “The company has not set a target number for any particular positions,” he added.
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Samsung's stock market decreased more than 20% in 2024 as the most famous company in the chips and smartphones segments struggled in key market areas. The company has fallen behind its rival SK Hynix Inc. in the memory chips used for artificial intelligence and has made little progress against Taiwan Semiconductor Manufacturing Co. in the production of custom-made chips for outside customers.
Samsung Executive Chairman Jay Y. Lee, who is also the grandson of the company’s founder, will handle the company's future tasks and challenges. The 56-year-old was accused of stock manipulation in February this year after years of legal troubles.
Samsung abruptly replaced the head of its chip sector this year, and the appointed new chief is Jun Young-hyun. The company abruptly warned that it had to change its workplace culture or get caught in a “vicious cycle.”