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Report: Samsung to cut jobs in China, reduce component orders

Reports from China suggest that Samsung is preparing to cut 1,000 jobs and may reduce component orders related to smartphones and tablets.

Published onSeptember 15, 2015

samsung galaxy note 5 color comparison (13 of 22)

Samsung can’t seem to escape reports that it is preparing to shrink its workforce in one way or another. The latest report comes from China and states that Samsung may be looking to cut around 1,000 jobs in the country, as smartphone sales hit saturation.

If true, this job cut would affect around 9 percent of Samsung’s workforce in China. Samsung declined to comment on the matter. Earlier in the month, Samsung dismissed reports that it was preparing to cut a number of management positions at its headquarters in South Korea. However, the tech company did state that it would be relocating some employees.

Sources from Korea area also suggesting that the company will be reducing its component orders for mobile products. As tablet and smartphone sales continue to remain under strain, Samsung is likely looking to reduce the number of devices that it produces to save costs. Although this means that the company may struggle to meet any up-tick in demand.

This will also have a knock-on effect for Samsung’s component businesses, such as its AMOLED display and semiconductor divisions. To offset its own falling product orders, Samsung may have to sell additional components to rival manufacturers. Flash memory sales have been strong lately, and the company should profit from 14nm chip manufacturing for Apple and Qualcomm. Chinese vendors are apparently expressing strong interest in Samsung’s AMOLED display technology too.

Report: Samsung to focus on profits rather than growth

Poor smartphones sales and questionable financial results are driving opinions that Samsung needs to do something to improve profits. Cutting labour costs would be one way to do it, as could taking tighter control over stock orders. Samsung is reportedly switching focus to profits rather than growth going forward, but there haven’t been any official details about how the company is planning to make this adjustment.

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