Samsung Electronics plans to cut up to 30% of its global workforce across multiple divisions, as per Reuters. The job cuts will mainly impact sales, marketing, and administrative staff in the Americas, Europe, Asia and Africa. Sources with direct knowledge of the situation indicated that the reduction will be completed before the end of the year.
Samsung said in a statement that the workforce changes are routine and meant to boost efficiency.
According to the company, there are no fixed targets for job cuts and production staff won’t be affected. Approximately 267,800 people work at Samsung worldwide, with the majority of them based overseas.
As per the company’s most recent sustainability report, the sales and marketing teams have about 25,100 employees, while the administrative roles comprise 27,800.
This comes as the company faces challenges in many key areas. The company’s chip business, a significant revenue generator, has taken longer to recover from an industry downturn, resulting in a 15-year low in earnings last year.
In India, Samsung has already begun offering severance packages to mid-level staff, with up to 1,000 jobs anticipated to be affected.
