Samsung faces global job cuts amid market struggles

Samsung Electronics is preparing to reduce its workforce by approximately 10% in regions such as Southeast Asia, Australia, and New Zealand. The company, which employs more than 267,800 people globally, has seen its shares fall by over 20% this year.

In Singapore, employees were called into private meetings with management to discuss upcoming layoffs and severance packages. While the reductions will primarily affect management and support roles, the company is determined to protect manufacturing positions. Similar workforce adjustments are expected in other international subsidiaries, though there are no immediate plans for domestic cuts.

Samsung’s struggles stem from increased competition in the AI market. Rivals such as SK Hynix have outperformed Samsung in memory chip production, while Taiwan Semiconductor Manufacturing Co. dominates custom-made chip production. To combat these difficulties, South Korean tech giant replaced the head of its chip division earlier this year, aiming to shift its corporate culture and improve efficiency.

Compounding the company’s woes, Samsung is dealing with labour disputes in its home market. The company’s largest union in South Korea called for a strike earlier this year, further complicating the situation. Despite the challenges, company’s leadership remains focused on regaining its competitive edge and addressing operational inefficiencies.