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Samsung US Layoffs: Consumer Tech Woes Deepen
20 Jul
Summary
- Samsung's US operations conduct layoffs affecting nearly 839 employees.
- Job cuts impact consumer electronics, sales, and marketing divisions.
- Company sees record profits from chips while phone business struggles.
Samsung's U.S. operations have recently seen significant layoffs, with reports indicating nearly 839 employees were affected. The job cuts primarily targeted roles within the display, phone, and other consumer electronics divisions, including sales and marketing positions. This move underscores a challenging period for Samsung's consumer-facing businesses.
This contrasts sharply with the company's lucrative chip and memory sector. Just this past quarter, Samsung experienced a remarkable 19-fold increase in profits, largely driven by surging demand for data center components. This financial success in the chip market is occurring even as Samsung reportedly faced difficulties projecting profitability for its smartphone line earlier this spring.
Meanwhile, workers in South Korea, where Samsung's core chip operations are based, have recently demonstrated considerable leverage. Organized Samsung workers had authorized a strike, and in May, the company agreed to significant worker compensation packages, including substantial bonuses, to ensure the smooth operation of its memory business.
