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Galaxy Note 7 recall could cause major internal changes at Samsung
The worldwide recall of the Samsung Galaxy Note 7 could lead to major internal changes at the South Korean company. A new report says that many Samsung employees fear there could be layoffs at all levels in the near future.
According to Reuters, Samsung’s annual employee review will begin in December. Needless to say, the Note 7 recall, which Samsung has already predicted will generate about $3 billion in losses, will cause more than just money issues. One unnamed Samsung insider told Reuters:
There’s a lot of talk there could be major turnover in the executive ranks on the hardware side. There’s also a lot of concern among the working-level employees about a major restructuring.
The report adds, again via unnamed sources, that there is also mounting frustration inside the company that Samsung has not yet found the reason for the Note 7’s exploding batteries. That was, of course, the big problem that lead to the recall and suspension of sales for the smartphone. It has also reportedly caused Samsung to reevaluate its plans for its next flagship device:
A person familiar with the development of the next Galaxy S smartphone, expected to launch early next year, said the process has now slowed as Samsung is anxious to avoid any repeat of the Note 7 problems in its future premium handsets.
Officially, a Samsung spokesperson told Reuters that it was “not considering any management changes or restructuring” due to the Galaxy Note 7 recall. However, it’s hard to believe cutting out all sales of a major flagship product won’t have long-ranging consequences. Do you think there should be major executive changes at Samsung due to the failure of the Note 7 launch?