Samsung Electronics Ltd, Plan to Let Go 10,000 of its Headquarters Staff
The Korean Giant has decided to let go of 10% of its staff from its Headquarters in South Korean as it needs to starting cutting expenses.
According to a local newspaper on latest Samsung news, the company plans on cutting ten per cent of its staff from the South Korean headquarters. The reason for this move was that the Korean giant did not do well again, after launching its new high end devices, against Chinese vendors and Apple, Inc.
Bloomberg citing Korean Economic Daily stated that the Korean firm is marking employees from the finance, human resource and public relations departments who are expected to lose their jobs. The firm is looking to cut expenses by next year and hence is laying off all these workers. Since the new Samsung Galaxy S6 edge plus and other high end devices that they launched failed to attract customers, the firm has continuously declined for the past five months and since April 2015, the firm has wiped out $40 billion. Samsung used to be the top sellers in China but now it is not considered as one of the top sellers in the country.
The multinational company despite of launching its new high end smartphones early and before Apple’s iPhone in the market failed to attract the market and the company’s shipments shares fell by 3 percentage points, according to Bloomberg on latest Samsung updates. As of June 30, 2015, the headquarters of the company in Suwon had over 98,000 employees so the company will let go of nearly 10,000 employees.
The demand for the new Galaxy S6 and Edge phones did not change; despite of having an early launch, therefore the firm had to adjust the prices of these high end phones. Apple is expected to take the market share of the smartphone and tablet yet again with the release of its new iPhone and tablets since people globally prefer that over Samsung. Due to this reason, the Korean giant is expected to fall down from 206 trillion won to around 200 trillion won which is $166 billion from $171 billion.
According to an analyst at Nomura Holding Inc., Chung Chang Won cutting jobs is the best possible way to control the costs of a company and it is good that Samsung is looking to tighten its belt when it knows that it will not see rapid growth in the years to come.
Among the top five smartphone players, the tech giant dropped the most by 1.3 percentage points putting it at a rank of number 2 right behind Apple, Inc. While in other news, the company stated at the Berlin fair that its smartwatch Samsung Gear will be available in October which it launched on August 31, 2015. In hopes of increasing its market share, the firm is likely to make the new smartwatches compatible with other devices.
