Samsung’s Singapore staff not spared as it cuts thousands of jobs in global layoff
Staff across different teams in Singapore on Tuesday were informed of the retrenchment and severance package details
Published Wed, Oct 2, 2024 · 12:10 AM
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The layoffs could affect about 10 per cent of the workforces in those markets, although the numbers for each subsidiary may vary, said one of the people, who asked not to be named because the matter is private. Job cuts are planned for other overseas subsidiaries and could reach 10 per cent in certain markets, said the person.
The South Korean company has about 147,000 staff overseas, more than half of its total employee of more than 267,800, according to its latest sustainability report. It’s not planning layoffs in its home market.
Samsung staff across different teams in Singapore were called into private meetings on Tuesday (Oct 1) with HR managers and their reporting managers, and were informed of the retrenchment and severance package details, said another person familiar with the matter.
“Some overseas subsidiaries are conducting routine workforce adjustments to improve operational efficiency,” a Samsung spokesperson said. “The company has not set a target number for any particular positions.”
Samsung shares have slid more than 20 per cent this year as the world’s largest maker of memory chips and smartphones struggles in key markets. It’s fallen behind rival SK Hynix in the memory chips used for artificial intelligence, and has made little progress against Taiwan Semiconductor Manufacturing Co in the production of custom-made chips for outside customers.
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The company has reduced the size of its workforce in the past as it’s navigated the notoriously cyclical memory chip market. Samsung recently trimmed about 10 per cent of jobs in India and some parts of Latin America, according to one of the people.In the latest push, Samsung is likely to cut less than 10 per cent of its total overseas staff of 147,000, the person said. The company aims to preserve manufacturing jobs, while it cuts management and support functions. The figures will be affected by local labour regulations and financial priorities.
Samsung has also been feuding with employees in South Korea. The largest of the tech giant’s several unions called the company’s first strike ever in May. BLOOMBERG
