Samsung Electronics is laying off employees in Southeast Asia, Australia, and New Zealand as part of a broader strategy to reduce thousands of jobs worldwide. The cuts could affect up to 10% of the workforce in these regions, though the exact numbers may vary by subsidiary. Samsung currently employs over 267,800 people globally, with 147,000 of those based outside South Korea. However, despite layoffs in other areas, the company reportedly has no intention of reducing its workforce in South Korea, according to Bloomberg.
In Singapore, several Samsung employees from different departments were summoned to private meetings with HR and their managers, where they were informed about the layoffs and their severance packages. While Samsung has acknowledged the job cuts, it has downplayed their significance. A company spokesperson stated, “Some overseas subsidiaries are conducting routine workforce adjustments to improve operational efficiency. The company has not set a target number for any particular positions.”
These layoffs coincide with Samsung’s struggles in key markets. The company’s shares have dropped over 20% this year due to intensified competition, especially in memory chips and smartphones. Samsung has fallen behind SK Hynix in producing memory chips for artificial intelligence (AI) and is also trailing Taiwan Semiconductor Manufacturing Co. in creating custom chips for external clients. Executive Chairman Jay Y. Lee now faces the challenge of guiding Samsung through these difficult times. Earlier this year, Samsung appointed Jun Young-hyun as the new head of its chip division, with a focus on reshaping the company’s workplace culture to avoid further setbacks.
Samsung has a history of reducing its workforce during challenging periods, particularly in the cyclical memory chip sector. Recently, the company reduced its workforce by about 10% in India and parts of Latin America.
In the current round of layoffs, Samsung is expected to cut less than 10% of its overseas workforce, primarily targeting management and support roles while preserving manufacturing jobs. The specific number of layoffs will depend on local labor laws and financial considerations.
