Samsung’s local staff axed amid major global reduction
Local staff at the Korean technology giant will face cuts under what is expected to be one of the largest rounds of lay-off seen this year.
Samsung will sack about 10 per cent of its global workforce, including Australian staff, as it reins in costs as high interest rates and subdued consumer spending hits the technology giant.
The Korean company is the next in a long list of global tech companies that have made major cuts amid rising interest rates, inflation and lower consuming spending seen across the board.
The global tech giant, which has about 267,800 total staff, is understood to employ some 147,000 staff outside of Korea.
A Samsung spokeswoman confirmed to The Australian that its staff will be part of the round of lay-offs.
“Some offices are conducting routine workforce adjustments. We are unable to speak for other regions or markets,” she said.
Based on its global headcount, a 10 per cent reduction would count for as many as 26,780 staff.
That figure would be among some of the largest lay-offs seen in the tech sector, which has seen reductions at all the biggest companies, from Microsoft to Amazon and Apple.
Computer manufacturer Dell has cut the most staff members this year, with many reports totalling a figure around 26,000.
In January, German tech giants SAP cut 8000 roles while over the same month PayPal reduced its headcount by a bout 9 per cent – axing 2500 staff – while Block, the parent company of Afterpay, let 1000 workers go.
Meta last year cut 10,000 staff from its global business, which followed a cut of 11,000 roles just four months earlier.
Multinational enterprise software giant Salesforce cut 7000 staff last year following a 1000-staff cut in November 2022.
Amazon also made major adjustments to its workforce around the same time, “eliminating” 18,000 roles.
Early reports suggested Samsung had directed several of its subsidiaries to make cuts by the end of 2024. The company has not confirmed which departments the cuts will come from or whether staff have been made aware of the lay-offs.
Samsung has been the world’s most popular smartphone maker for several years only briefly losing the place to Apple for around three months earlier this year.
The Korean company still maintains that title in the TV market as well as the soundbar market.
Samsung’s lay-offs are not contained to Australia, with cuts being across the pacific, including in New Zealand and Southeast Asia.
One of the company’s largest workforces outside of Korea is in Thailand, with some 4500 staff who oversees operations in Thailand, Myanmar, Cambodia and Laos.
News of lay-offs at Samsung first broke in September, with Reuters reporting the company had directed subsidiaries worldwide to make cuts in sales, marketing and administrative teams.
Bloomberg recently reported that staff in Samsung’s Singaporean offices met with human resources managers to discuss redundancy packages. It’s understood that most cuts are not in manufacturing teams but rather management and support functions.
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