Recently, South Korean media reported that tech giant Samsung Electronics is preparing to downsize its sales division in China, with an initial cut of 8% affecting approximately 130 employees. The total number of layoffs could reach 30% by 2025. In response, Samsung Electronics China stated that they will carry out “necessary business adjustments and personnel optimization.”
According to a report from South Korean media outlet “Seoul Economic Daily” on September 3, intensifying competition in the Chinese market and a sluggish economy have led to uncertain business prospects for Samsung Electronics. Therefore, the company has opted for “restructuring measures” to address the situation.
Industry insiders mentioned that Samsung Electronics China has recently informed employees about the downsizing and initiated the collection of voluntary resignations. The layoff plan could involve 8% of the 1,600 regional sales staff, around 130 people. If the number of voluntary resignations is insufficient, the company will then select layoff targets based on pre-established criteria.
An internal source at the company revealed, “This round of layoffs is just the beginning, and it is expected that the extent of layoffs could reach 30% by next year.” The company plans to reduce a portion of local employees in the Chinese sales subsidiaries and indirect support personnel among production subsidiaries before next year, and the layoff process has already begun.
The report noted that the employees of Samsung Electronics’ China sales division are all Chinese nationals employed by the company locally. Upon hearing the news of the layoffs, these employees were reportedly shocked.
Responding to “The Paper,” Samsung Electronics China stated that in order to enhance organizational efficiency and market competitiveness, the company will undertake necessary business adjustments and personnel optimization. By reducing some highly repetitive tasks and positions, the company aims to ensure better allocation of resources and improve organizational efficiency.
Previously, IBM China also confirmed the complete closure of its Chinese research and development department, affecting over 1,000 employees.