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Due to Loss, Samsung Cut 10% of Their Employees

Due to Loss, Samsung Cut 10% of Their Employees


Samsung Electronics Co. has planned to cut 10% of their employees after this South Korean company had lost from Apple Inc in sales and now it is nearly on the same position to XiaoMi Corp., Lenovo Group Ltd, and Huawei Technologies Co. This decision was taken following the unsuccessful Samsung Galaxy S6 to attract consumers and affected the recently five-months sale.

The failure affects negatively to the decreasing of Samsung’s market value to more than 40 million USD. Samsung’s share in global smartphone market is also decreased by 3% on the second quarter of this year. Based on the data collected by Bloomberg, it is estimated that Samsung’s sales will decrease and stay on the number of 200,2 trillion won, after it reached 206,2 trillion won last year.

Samsung has targeted to cut their employees from divisions of HRD, public relation, and finance. According to Chung Chang Won, analyst of Nomura Holdings Inc. in Seoul, cutting the number of employees is the easiest way to control funds. This decision can also ease the strict control process on Samsung’s outcome in mobile industry. Samsung has the number of 98.999 employees in their head office on June 30, 2015. Besides Samsung, Suwon, the other South Korean based company has also planned to cut budgets this year.