SEOUL: Samsung Electronics, a leading tech giant in smartphones and semiconductors, is seen implementing austerity measures, reducing headcounts and downsizing celebratory events as it falls behind global peers in its core product markets.

Last week, Bloomberg reported Samsung Electronics is expected to lay off about 10pc of its total overseas staff of 147,000, with the latest headcount cut being carried out in its headquarters in Southeast Asia, Australia and New Zealand.

The company already laid off about 10pc of jobs in India and some parts of Latin America, and is expected to further reduce headcounts in other overseas subsidiaries, the news outlet added, citing sources familiar with the matter.

Overseas staff make up more than half of the company’s total employees of more than 267,800.

Company is expected to lay off about ten per cent of its total overseas staff

Over the recent staff reductions, Samsung maintained its workforce adjustments are only a part of its “routine activity.”

“Some overseas subsidiaries are conducting routine workforce adjustments to improve operational efficiency,” a Samsung official said. “The company has not set a target number for any particular positions.”

Industry observers view the tech giant is tightening the belt amid declining performance in its core products including memory chips and home appliances.

Market analysts are lowering the earnings prospects for Samsung for the July-September period. Market Intelligence firm Yonhap Infomax collected the opinions of 16 securities firms last month and estimated Samsung’s operating profit for the third quarter to be 10.4 trillion won.

This is lower than the initial fore­cast of 14 trillion won, with securities firms recently lowering their expectations. iM Securities initially forecast Samsung to log an operating profit of 14.6 trillion won in Q3, but reduced it to 11.2 trillion won, down by 23.3pc . KB Securities estimates 9.7 trillion won while Korea Investment & Securities forecasts 10.3 trillion won.

Published in Dawn, October 7th, 2024

Opinion

From hard to harder

From hard to harder

Instead of ‘hard state’ turning even harder, citizens deserve a state that goes soft on them in delivering democratic and development aspirations.

Editorial

Canal unrest
Updated 03 Apr, 2025

Canal unrest

With rising water scarcity in Indus system, it is crucial to move towards a consensus-driven policymaking process.
Iran-US tension
03 Apr, 2025

Iran-US tension

THE Trump administration’s threats aimed at Iran do not bode well for global peace, and unless Washington changes...
Flights to history
03 Apr, 2025

Flights to history

MOHENJODARO could have been the forgotten gold we desperately need. Instead, this 5,000-year-old well of antiquity ...
Eid amidst crises
Updated 31 Mar, 2025

Eid amidst crises

Until the Muslim world takes practical steps to end these atrocities, these besieged populations will see no joy.
Women’s rights
Updated 01 Apr, 2025

Women’s rights

Such judgements, and others directly impacting women’s rights should be given more airtime in media.
Not helping
Updated 02 Apr, 2025

Not helping

If it's committed to peace in Balochistan, the state must draw a line between militancy and legitimate protest.