Samsung to cut nearly 10,000 of its HQ staff after recent disappointing market performance

By midian182 · 11 replies
Sep 8, 2015
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  1. Samsung is preparing to cut 10% of its staff at the company’s main headquarters in Suwon, South Korea, according to a local newspaper. The move comes as Samsung’s smartphones continue to underperform, resulting in five straight monthly declines in sales and $44 billion being wiped off the company’s market value since April.

    Samsung is said to be targeting almost 10,000 employees in the HQ's human resources, public relations, and finance departments, according to the Korea Economic Daily. The paper added the company also plans to cut some expenses next year.

    The tech giant has seen its share of global smartphone shipments fall more than 3 percent in the second quarter. Even though the Galaxy S6 and S6 Edge have gained overwhelmingly positive reviews, Samsung has still struggled to compete against increasing competition from Apple. Low sales of the company’s older devices have also been blamed on the slump, which has seen Samsung slip from its position as the number one seller in the world’s biggest phone market, China.

    Chung Chang Won, an analyst at Nomura Holdings Inc. in Seoul, told Bloomberg: “Cutting jobs is the easiest way to control costs and Samsung’s spending on mobile business could also be more tightly controlled. Samsung’s preparing to tighten its belt as it isn’t likely to see rapid profit growth in the years to come.”

    Samsung recently dropped the price of the Galaxy S6 and S6 Edge after the devices didn’t attract the sales that were previously expected. The company’s stock raised 1.7 percent in Seoul after news of the cuts was released.

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  2. Theinsanegamer

    Theinsanegamer TS Evangelist Posts: 857   +873

    "Samsung recently dropped the price of the Galaxy S6 and S6 Edge after the devices didn’t attract the sales that were previously expected."

    You mean, removing the useful features ( removable battery, sd card)people used so they could make the back out of glass to impress review sites was a BAD long term strategy? who wudda thunk?
    MoeJoe likes this.
  3. VitalyT

    VitalyT Russ-Puss Posts: 3,660   +1,948

    The latest disaster was called Galaxy Note 5, a device that is so much worse than Galaxy Note 4. The lack of MicroSD and removable battery turned most of consumers away right off, saying that Samsung just lost it. Others state that replacing the nice-on-touch leather-like back with a slippery and easy-to-crack glass one was moronic also.

    They sacrificed everything good about Note series toward a small improvement in the looks, not even the feel, just the looks, and away with things people liked about Note series. Whatta dumb move, Samsung! They've just killed off their best product line.

    After a bit of hesitation, I finally just bought a brand new Note 4, the best device Samsung ever made, according to most of reviews I've read, with Note 5 being a major disappointment.
    Last edited: Sep 8, 2015
    MoeJoe likes this.
  4. Dibrol

    Dibrol TS Rookie

    The biggest miss is Note 5! Cause they didn't give it to Europe!
    The second is missing SD microcard.
    MoeJoe likes this.
  5. MoeJoe

    MoeJoe TS Guru Posts: 710   +379

    Bad decisions have consequences.
    Dibrol likes this.
  6. Samsung makes of the best techs, could be the best if they weren't so deceitful.
  7. captaincranky

    captaincranky TechSpot Addict Posts: 12,965   +2,521

    It looks to me like they're cutting out the dead wood. It's not like they're laying off factory workers. I'd almost be willing to bet half those people couldn't even explain what their job is, (or rather 'was').

    I know the term, "drones" has come to mean either US military aggression, or annoying flying thingeys, but once upon it meant an entire social caste in a beehive, for which nobody could figure out its purpose. These were the "Samsung HR & PR Drone Bees"....
    Last edited: Sep 8, 2015
    Skidmarksdeluxe likes this.
  8. DaveBG

    DaveBG TS Addict Posts: 302   +97

    Hahah I told them not to remove the SD card and removable battery...
    How can a phone in 2015 not have SD card??? They deserve it!
    Dibrol likes this.
  9. Skidmarksdeluxe

    Skidmarksdeluxe TS Evangelist Posts: 8,647   +3,274

    I agree with you. They're not just cutting down on staff because sales aren't go as well as expected but a company the size of Samsung is bound to have a lot of clock watchers only collecting a sizeable paycheck, doing nothing else.
  10. Really...It didn't take a genius to know that removing features that so many wanted and USED, would yield poor sales.
    I'm gonna say it again: Samsung needs to fire ALL who agreed/voted for removing those features (microSD slot & removable battery). And when I say all, it extends to all on the board of directors.

    But as we've seen with so many other companies, moronic people seems to be the only once in those higher-up positions. *sigh*
    Dibrol likes this.
  11. MoeJoe

    MoeJoe TS Guru Posts: 710   +379

    10% is a big deal. Don't be fooled.

    Bad product decisions DO have consequences.
    Dibrol likes this.
  12. Dibrol

    Dibrol TS Rookie

    Relocate my SD card, and Note5!

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