Samsung to cut jobs in manufacturing plants

|October 30, 2015 0

SEOUL/SINGAPORE: Samsung Group is considering jobs cuts to save costs in countries that Samsung runs manufacturing plants in.

However, Samsung Electronics, the groups flagship company is tight-lipped about the job costs.

The group will increase its reduction of managerial-level workers and executives as it seeks to become leaner and reduce costs amid an uncertain market outlook, officials said adding that “Samsung’s top priority is to save costs. Average workers with mediocre performance are being advised to leave the company with a sizable compensation,” reports Korea Times quoting a company official said.

Another official, who asked not to be identified, said human resources officials at Samsung units were meeting with employees to persuade them to join the “voluntary retirement system.”

The key point is how many Samsung Electronics’ workers will be let go as the electronics titan provides the biggest revenue for the group and its human resources management plan will act as a guideline to other group affiliates.

Industry watchers said Samsung Electronics is expected to fire up to 30 percent of its workers as it cuts back on the role of those who work in finance, human resources and marketing.

Samsung is increasingly being challenged in its smartphone business due to the rise of cheap Chinese vendors. In memory chips, which it has maintained the leadership for more than two decades, Samsung may be challenged in the near future due to advances by Intel in NAND chips and China’s growing semiconductor business.

Samsung Electronics said it had no comment about its layoff plans.

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