Korea Times reported that Samsung will carry out the staff reduction plan to cut the expense by the end of this year. The involved departments are including financial department, human resource department and marketing department.
Samsung doesn’t officially response this news yet, but its Chinese branch confirmed that it has no plan to cut jobs here.
Korea Times reported the news confirmed by insiders, the top priority for Samsung is to cut its manufacturing expense. To those staffs who have ordinary performance, they are suggested to quit the job and get some compensations. To those over 50-year-old managers with ordinary performance and have difficulty to get promoted, the firm suggested they get retired voluntary.
Early in September, there were rumors that Samsung will cut jobs of about 10 thousands of employees. It was focus on Human Resource departments, Job Relation department and Financial department.
Samsung faces many challenges for its performance. It released new type of smartphones Galaxy S6 and Galaxy S6 Edge, but its marketing expense increased in the second quarter earnings due to the low of shipment quantity. Thus,the sales volume of Galaxy S6 and Galaxy S6 Edge got affected. Samsung’s net profit number declined five quarters in a row before.
In its latest released third quarter earnings, Samsung’s revenue is 284.4 billion RMB, increasing by 8% compared to the same quarter last year. Its net profit amounts to 29.21 billion RMB. It was the first quarter that net profit realized increasing in the past two years.
