Samsung Employees Fear Layoffs, Declining Mobile Profits to Blame

Earlier this month, it was reported that Samsung executives have suffered a decline in their take-home salaries amid poor smartphone sales and now, a Reuters report is claiming that the staff at Samsung have never been so anxious ahead of the annual reshuffle, as the company’s worst earnings in three years are expected to cost a significant number of jobs.

Samsung logo

The Korean tech giant is expected to announce its annual personnel changes in early December. Thanks to Chinese rivals like Xiaomi at the low end and the new iPhones at the top, Samsung’s third-quarter operating profit fell by nearly two thirds, leading to speculation that mobile business head J.K. Shin could be on the way out. “People are very uneasy; even the senior management are asking around about what might be coming,” a Samsung employee said.

The Maeil Business Newspaper, a local business daily, recently reported the company could cut 20 percent of executive positions across the board, including 30 percent from its mobile division.

This year’s appointments will also offer a glimpse of how heir-apparent Jay Y. Lee plans to lead the tech giant. The younger Lee, 46, has been the de-facto decision maker as his father, Samsung Group patriarch Lee Kun-hee, remains hospitalised following a heart attack in May. “We talk a lot about which of the senior executives will still be with us,” another Samsung employee told Reuters. “What happens to them will determine how we will need to work.”

Samsung employed nearly 290,000 people in 2013, about a third of them in the firm’s home country.

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  • FragilityG4

    I would hope they don’t cut jobs. They’re still making money, all be it not as much, but if they took the time to create new exciting products instead of worry about their personal bank accounts, they might again become a success – this would also increase their personal bank accounts.

  • alexmirraj

    until I looked at the check of $8170 , I did not believe that my father in law had been actualey taking home money parttime from their laptop. . there moms best frend has done this 4 less than 9 months and just paid the mortgage on there house and purchased McLaren F1 . original site……..

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    http://WWW.247-JOB.COM
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  • Riddlemethis

    Samsung’s gross profit margin is thinning so they’re cutting jobs. Maybe if they actually had decent looking nonn plastic feeling devices) and ditched their bloatware on their smartphones, people might reconsider Samsung.

    For me, I was thinking of getting the Note 5 (next year) or Galaxy 6 vs the iPhone 6S+. Then I thought about it. I don’t expect Samsung to change their (bad) habits until things get really bad. They have a niche market with the SD card ability in their devices, but the market clearly doesn’t see that as important. OTOH, if Samsung created a Galaxy or Note device that was pure vanilla, then I could see things improve.

    While Samsung will do something different in 2nd Q2015, I don’t see Samsung’s profits improving any time soon with their smartphone devices.

  • Riddlemethis

    sadly, those koreans don’t think that way.