BUSINESS

Samsung reduces more than 10,000 employees in China

By Korea Herald
  • Published : Jul 4, 2016 - 17:18
  • Updated : Jul 7, 2016 - 13:04

Samsung Electronics, which has continued streamlining its workforce on its home turf, reduced more than 10,000 employees in the all-important Chinese market last year, according to its recent sustainability report.

According to the report published on July 3, a total of 325,677 people worked at the Korean tech giant last year globally, compared to 319,208 workers in 2014.

Consumers queue to experience Samsung’s Galaxy S7 at a store in Guangzhou, China. (Samsung Electronics)

Only Southeast Asia and Japan saw their employee numbers increase over the past year. Especially in Southeast Asia where the company’s production plants are located, the figures soared to 140,437, with an additional 28,000 people joining last year.

But Samsung cut workforce in other regions during the same period.

The company reduced some 2,500 people at its Korea headquarters, the first reduction since the 2008 financial crisis.

Latin America and Europe also saw more than 3,000 jobs being reduced, respectively.

China saw the biggest cut, losing almost 12,000 workers last year. Until 2013 when Samsung topped the Chinese smartphone market, there were more than 60,000 workers in China. But last year the number fell to some 45,000 people.

Amid fiercer competition with local rivals such as Huawei, Oppo and Vivo, Samsung fell to the No. 5 player last year in terms of market share.

The portion of Chinese sales has also continued to fall in recent years. Having peaked at 18 percent 2013, the figure fell to 15 percent, or about 31 trillion won (US$27 billion), last year.

Samsung hired 8,580 workers in China, which compared to 35,634 people in 2013.

By Lee Ji-yoon (jylee@heraldcorp.com)


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