Samsung Electronics To Cut Up To 30% Of Global Jobs: Report

Samsung Electronics is set to slash its oversees workforce by 30% in certain divisions, according to a report.

The world's largest maker of memory chips, smartphones, and televisions plans to implement the global headcount reduction by the end of the year, and it would hit jobs across the Americas, Asia, Europe, and Africa, Reuters reported, citing people familiar with the matter.

According to the report, the South Korean tech giant has already asked its subsidiaries around the globe to reduce sales and marketing staff by about 15% and the administrative staff by up to 30%.

As per the Reuters report, six more people familiar with the plan also confirmed Samsung's planned move. However, it remains unclear which countries will be affected and how many jobs will be lost.

In a statement, Samsung called workforce adjustments at some of their operations abroad as routine measures aimed at improving efficiency. It said that there are no specific targets associated with these plans and that production staff will not be impacted.

The latest sustainability report from Samsung showed that the company employed 267,800 people as of the end of 2023, with over half, or approximately 147,000 employees, based abroad.

About three weeks ago, the company's "global mandate" on slashing jobs was sent to different overseas offices. The tech giant's India operation was already offering severance packages to some of its mid-level employees who left recently, the report said.

The company is said to have some 25,000 employees in India, and the total number who may need to leave the India unit could reach 1,000, the report further said, citing a source.

In China, the company announced a 30% reduction in staffing for its sales operations, according to a recent report.

The news comes as last month, leaders of a South Korean union representing tens of thousands of workers at Samsung Electronics staged a protest outside the house of the company's chairman and heir, after fresh negotiations failed.

Thousands of union members stopped working on July 8 for what was initially meant to be a three-day strike, part of a long-running battle over pay and benefits. The union subsequently extended the work stoppage "indefinitely".

At the time, Samsung said the action was not affecting production, posting record growth and profits for the second quarter.