Year 2024 has been great for Samsung Electronics in terms of profits. With the company seeing its fastest growth since 2010 , the stocks also fell around 20% alone in this year. One thing that is undeniable is that Samsung is facing fierce competition in memory as well as the semiconductor fab market.
On one side, where more and more companies are moving towards TSMC for the 3 nm process , Samsung is also falling behind rivals like SK Hynix Inc. in the memory chips used for artificial intelligence. It is high time that Samung restructures itself to continue in this competitive market.
Just after trimming away nearly 10% of the taskforce in India , according to some sources, Samsung is ready for another global job cut. But this time it will be huge . According to what a few employees with direct knowledge of the matter told Reuters , Samsung Electronics might announce a huge 30% job cut in the admin area along with a 15% global job cut in the marketing department.
It seems that the production team will remain unaffected by this job cut.
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Samsung Electronics saw its fastest growth since 2010, with operating profits soaring in the second quarter to 10.44 trillion won. The major portion of these profits came from increased demand for generative AI , high demand for HBRAM, and the rebound of semiconductor prices post-Covid.
But still, the company is reducing its workforce. It does not seem like Samsung is trying to go on the path of Intel . Unlike Intel, there has been no news that Samsung is reducing its workforce in the production team , just affecting the marketing and admin teams.
Still, if somehow such news comes, the low demand of Samsung’s 3 nm tech might be a solid reason behind it . Recently seeing the low yield percentage Almost every big tech company is opting for TSMC’s 3 nm process over Samsung’s . Even this time Google has asked TSMC to manufacture its 5th generation Tensor processors.
South Korea will not receive any job cuts.
Being South Korea’s largest employer, Samung plays a vital role in the country’s economy, and reducing head counts in the company’s home country will be quite difficult.
It is much because of political reasons rather than economic reasons. Recently, Samsung’s South Korean workers’ union had already gone on strike for several days, demanding higher wages and benefits. If the company announces job cuts over there , the existing anger will get feulled up, and it will become very difficult for the company to handle the situation. So most probably there will be no job cuts in South Korea.
How will this job cut impact India?
Samung Electronics has somewhat 10,000+ employees in India. And just like in South Korea , the labourers in the Chennai plant of Samsung Electronics India are on a strike to increase their wages. The conditions are only getting worse day by day. Seeing the current circumstances , Samsung will hesitate in firing the employees. In the future, Samsung might plan to reduce the workforce , but right now it seems nearly impossible.
But as per the news we are getting, the company has plans to reduce its workforce by 1000.
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