Samsung Set to Reduce Administrative Workforce by Up to 30% by End of 2024

Samsung is preparing for significant workforce reductions in its sales, marketing, and administrative departments to enhance efficiency across its operations.

Thousands of Job Cuts Expected as Samsung Aims for Streamlined Operations

2024 has been marked by major layoffs across various industries, with the tech sector facing particularly harsh cuts. Companies like Intel have already announced reductions of up to 10,000 employees, while Microsoft’s Xbox division has also faced downsizing. Now, Samsung is the latest major player to announce cuts, with reports suggesting the company may reduce up to one-third of its staff in certain departments.

Layoffs to Begin Overseas, with Samsung India Already Impacted

The job cuts are expected to take place predominantly in Samsung’s overseas branches. The company has already instructed its subsidiaries to implement the layoffs before the end of 2024. Samsung India, in particular, has felt the impact, with reports of mid-level staff losing their positions and around 200 executives being let go due to slowing business.

While the cuts will severely impact sales, marketing, and administrative roles, production staff are expected to remain largely unaffected. With a global workforce of approximately 267,800 employees as of 2023, the cuts could result in more than 25,000 job losses in sales and marketing alone, with an additional 27,800 layoffs in other departments.

Declining Demand and Market Share Struggles

Samsung, a dominant force in the smartphone, consumer electronics, and home appliances industries, has been facing declining demand in 2024. This has contributed to shrinking market share and is a major factor behind the decision to reduce its workforce. In India alone, it is estimated that as many as 1,000 jobs could be cut.

The company has been facing stiff competition from rivals like Xiaomi and Vivo. The ongoing rivalry with Apple, which continues to capture greater market share, has further intensified the challenges faced by Samsung’s smartphone division. While the layoffs will be concentrated abroad, it’s uncertain whether the South Korean headquarters will experience similar reductions, given the political sensitivity surrounding the issue.