Samsung to Cut Thousands of Jobs Globally Amid Struggles in AI Market
- Samsung Electronics is planning to slash thousands of jobs globally, targeting Southeast Asia, Australia, and New Zealand.
- The layoffs could affect up to 10% of employees across various subsidiaries.
- Samsung’s struggles in the AI and chip markets are driving the workforce reductions.
Samsung Electronics is set to cut thousands of jobs worldwide as the company seeks to streamline operations in the face of growing challenges in the AI and chip markets. According to Bloomberg, the layoffs will impact employees in Southeast Asia, Australia, and New Zealand, with some overseas subsidiaries facing up to a 10% workforce reduction.
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While the exact numbers may vary across different markets, the company employs roughly 147,000 workers overseas, more than half of its total workforce of 267,800. So far, Samsung has not announced any layoffs in its home country of South Korea.
Layoffs Affect Global Workforce
Sources familiar with the matter revealed that Samsung Singapore employees were informed of the layoffs on October 1, with managers individually discussing retrenchment and severance packages. A Samsung spokesperson commented, “Some overseas subsidiaries are making routine workforce adjustments to improve operational efficiency,” adding that there is no target number for any specific positions.
These global layoffs follow a 20% drop in Samsung’s stock in 2024, as the company has struggled in key markets. Samsung has faced significant competition from rivals such as SK Hynix Inc. in memory chips used for AI and Taiwan Semiconductor Manufacturing Co. in custom chip production.
Samsung Faces Increased Competition
Despite its dominance in the smartphone and chips segments, Samsung has been losing ground to its competitors in recent years. The company has been particularly slow to catch up in the AI chip market, where rivals like SK Hynix and Taiwan Semiconductor have made significant gains.
Jay Y. Lee, Samsung’s Executive Chairman and grandson of the company’s founder, will be tasked with navigating these challenges. Lee has been embroiled in legal troubles over the years, including accusations of stock manipulation earlier this year.
In an effort to revitalize the company, Samsung has replaced the head of its chip division this year, appointing Jun Young-hyun to the role. The company has also warned that it must reform its workplace culture to avoid being trapped in a “vicious cycle.”
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