In Short:
Samsung Electronics announced plans to cut jobs in some Asian markets, potentially affecting 10% of its workforce in regions like Southeast Asia, Australia, and New Zealand. The company stated these layoffs are part of regular adjustments to improve efficiency. Meanwhile, Samsung experienced significant growth with profits soaring 1,462% in the second quarter, driven by strong chip demand.
Samsung Electronics announced on Wednesday its plans to reduce the workforce in some of its Asian operations, following a report indicating that approximately one in ten positions in the affected markets may be eliminated.
Job Cuts Across Asian Markets
The world’s largest memory chip manufacturer is adjusting staffing levels in Southeast Asia, Australia, and New Zealand, as confirmed by a company spokesperson to AFP. The spokesperson noted that “the adjustments include job cuts.”
Operational Efficiency as a Priority
The company characterized these changes as “routine workforce adjustments” aimed at enhancing operational efficiency. A statement from Samsung Electronics indicated that the company has not predetermined a specific number of positions slated for reduction.
Possible Impact on Workforce
Despite Samsung’s statement, Bloomberg reported that the layoffs could potentially affect around 10 percent of the workforce in the aforementioned markets. Currently, the Suwon-based firm employs over 267,800 individuals, with more than half of its workforce located abroad.
Context of the Job Cuts
This announcement follows a significant decision by Intel, the US chipmaker, which disclosed in August its intention to reduce its workforce by more than 15 percent in an effort to streamline operations after experiencing a reported loss of $1.6 billion in the second quarter.
Financial Performance Highlights
In contrast, Samsung enjoyed considerable financial growth, with its operating profits soaring in the second quarter to 10.44 trillion won. This marks a remarkable increase of 1,462.29 percent from the 670 billion won reported during the same period last year, significantly surpassing market expectations. The surge in profits is attributed to rising chip prices and growing demand for generative AI technologies.
Samsung Electronics is the flagship subsidiary of the South Korean conglomerate Samsung Group, which is the largest family-controlled conglomerate in Asia’s fourth-largest economy.
