Korea’s Economic Daily reported Tuesday that Samsung Electronics Company is preparing to thin staff at their Suwon, South Korea Headquarters by 10 percent. The company reportedly employed 98,999 as of June 30 making the reduction in staff at 10,000 people in round numbers. The layoffs will target human resource, public relations and finance departments – additional expense reductions will continue on into 2016.
Samsung has suffered serious setbacks in its effort to attain market supremacy with their new high-end Galaxy smartphones to the tune of $40 billion in the company’s market value over the last five months. Samsung’s share of global smartphone shipments fell by more than three percent in Q2 and is no longer the top seller in China, the world’s biggest market for mobile phones.
Samsung has been bleeding on all fronts except the semiconductor division’s memory products. The glut of unsold TV’s backing up in warehouses and now “unmovable” smartphones adding to the woes has forced the company into cutting “non-essential” employees from headquarters staff. The coming Christmas season is expected to give some relief though market conditions in China, Samsung’s biggest market, continue to deteriorate.
Apples annual product announcements tomorrow in San Francisco will most likely add to the company’s list of worries.