Samsung Job Cuts: Navigating AI Challenges in Business

Wednesday, 2 October 2024, 04:15

Business disruptions are underway as Samsung plans significant job cuts amid AI struggles. The company's workforce reduction could impact up to 10% of its global employees, highlighting broader trends in the tech industry.
Ibtimes
Samsung Job Cuts: Navigating AI Challenges in Business

Business Disruption with Samsung Job Cuts

Samsung Electronics Co. is reportedly planning layoffs across its global operations in Southeast Asia, Australia, and New Zealand, which could affect up to 10% of the company's workforce in these markets. The staff in Samsung's Singapore office were informed about their layoffs and severance package on Tuesday, Bloomberg reported, citing an unnamed source. The company does not plan any layoffs in its domestic market.

Understanding the Context Behind the Layoffs

Headquartered in South Korea, Samsung is the largest manufacturer of memory chips and smartphones in the world, employing 147,000 staff overseas, which accounts for more than half of its total workforce of over 267,800, according to its latest sustainability report. The report cited another person familiar with the situation as saying that the numbers for each subsidiary may vary.

  • Reduction of Global Headcount: Samsung's latest move aims to cut thousands of jobs, likely reducing less than 10% of its total overseas staff.
  • Protection of Manufacturing Roles: With these cuts, Samsung intends to safeguard manufacturing jobs while reducing management and support functions.
  • Routine Adjustments: Following the news, the company stated that staff retrenchment is a routine adjustment aimed at improving efficiency.

This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.


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