Samsung plans major layoffs amid fierce competition from Apple and Huawei

Samsung Electronics is reportedly planning significant layoffs, targeting a reduction of up to 30% in certain divisions of its global workforce. This decision comes as the company faces intense competition from rivals like Apple and Huawei, particularly in the premium smartphone market. The layoffs are expected to affect sales and marketing staff by around 15% and administrative staff by up to 30%, with job cuts anticipated across various regions including the Americas, Europe, Asia, and Africa. As of the end of 2023, Samsung employed approximately 267,800 individuals, with over half of them based overseas. The company's operations in India, which employs around 25,000 people, may see up to 1,000 job cuts, while in China, about 30% of the sales operation workforce is expected to be impacted. The exact number of layoffs and the specific business units affected remain uncertain, as the company has not disclosed detailed information. These workforce adjustments are described by Samsung as routine measures aimed at improving efficiency, with no specific targets set and no impact on production staff. The layoffs are a response to declining sales and a slowdown in global demand for tech products, as the company’s chip business struggles to recover from an industry slump that resulted in a 15-year low in profits last year. Additionally, the company has faced challenges in India, where its market share has reached a decade low, prompting the need for cost-cutting measures. Earlier this year, employees at Samsung Electronics also initiated a strike for better pay, indicating underlying employee dissatisfaction amid these changes.