In an effort to boost efficiency, Samsung is set to implement significant reductions in its sales, marketing, and administrative staff. The news arrives in the wake of a series of major layoffs across the tech industry in 2024, with companies like Intel and Microsoft also making substantial cuts.
According to Reuters, Samsung plans to reduce its sales and marketing workforce by about 15% and its administrative team by up to 30% by the end of the year. Multiple sources have confirmed these projections, highlighting the confidential nature of the company’s strategy.
The reductions will primarily affect Samsung’s international branches, with directives already issued to its subsidiaries to initiate these changes before the close of 2024. This move has already impacted the company’s operations in India, leading to the layoff of numerous mid-level employees and around 200 executives.
While the sales, marketing, and administrative departments face the most significant cuts, Samsung’s production staff will largely remain unaffected. The company, which employed approximately 267,800 people in 2023, could see over 25,000 job losses in sales and marketing alone, and an additional 27,800 positions eliminated from other departments.
Historically a leading figure in the mobile phone, consumer electronics, and home appliance markets, Samsung is experiencing a downturn in demand, resulting in a loss of market share. This downturn has prompted the company to scale back its workforce. In India alone, it’s anticipated that around 1,000 jobs will be slashed.
Samsung is grappling with fierce competition from Xiaomi and Vivo, as well as an escalating rivalry with Apple, which is gaining traction in the smartphone market. While the bulk of the layoffs will occur overseas, it remains uncertain if similar measures will take place at Samsung’s South Korean headquarters due to the political sensitivity surrounding the issue.
