Samsung Electronics is laying off workers across Southeast Asia, Australia, and New Zealand as part of a larger plan to cut thousands of jobs worldwide. These layoffs could impact up to 10% of the workforce in these regions, although the exact numbers might differ for each subsidiary.
Globally, Samsung employs over 267,800 people, with 147,000 of those working outside South Korea. Despite the cuts in other regions, the company has no plans to reduce its workforce in its home country, reports Bloomberg.
In Singapore, Samsung employees from various teams were reportedly called into private meetings with HR and their managers, where they were informed about the layoffs and details of their severance packages.
Also read: Samsung India to layoff over 200 employees amid increasing competition, falling sales
Samsung acknowledged the layoffs but downplayed the significance. A company spokesperson stated, “Some overseas subsidiaries are conducting routine workforce adjustments to improve operational efficiency,” the spokesperson said. “The company has not set a target number for any particular positions.”
The layoffs come at a time when Samsung is struggling in key markets. Its shares have dropped by more than 20% this year as the company faces stiff competition, especially in memory chips and smartphones. Samsung has fallen behind its rival, SK Hynix, in producing memory chips used in artificial intelligence (AI), and it also lags behind Taiwan Semiconductor Manufacturing Co. in making custom chips for external clients.
Executive Chairman Jay Y. Lee is now tasked with steering Samsung through these tough times. Earlier this year, Samsung replaced the head of its chip division, with the new chief, Jun Young-hyun, emphasising the need to change the company’s workplace culture to avoid further setbacks.
Samsung has previously trimmed its workforce during difficult times, especially in the cyclical memory chip industry. Recently, the company cut about 10% of jobs in India and parts of Latin America.
In this current wave of layoffs, Samsung is expected to cut less than 10% of its global overseas workforce, with a focus on reducing management and support roles while preserving manufacturing jobs. The exact number of layoffs will depend on local labour laws and financial priorities.