Groundless Rumor?
As Samsung Electronics is struggling in the Chinese smartphone market, it’s been rumored that the company is planning to cut its workforce on a large scale.
Samsung Electronics had taken the top spot in the Chinese smartphone market until two years ago, but the company is not even in top five now. With the Galaxy Note 7 having been discontinued, rumors over workforce cuts in Samsung Electronics have come out.
According to electronics industry sources on November 24, Samsung Electronics has a hard time explaining itself as there is a groundless rumor circulating in China that the company can reduce its Chinese workforce by 20 percent.
In this regard, Samsung Electronics denied rumors, saying it is completely not true though some Chinese press made such reports. However, an official from the industry said, “Considering Samsung’s change in the number of Chinese staff members and local business conditions, there is a possibility for the company to cut its workforce.”
Samsung Electronics has been cutting the number of its employees in China since 2014. As a result, the figure decreased from 56,492 at the end of 2014 to 44,948 to the end of last year. It means that about 20 percent of the total workforce left the company over the last year.