News by Luke Jones on Friday November 28, 2014.
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Plenty of Apple fans are probably delighted that Samsung is struggling this year, although in perspective the company still leads the smartphone market. However, when a company falls on hard times it is easy to forget that people's livelihoods are on the line. That is probably something that Samsung employees have not had to worry about for many years, but this year is going to be different.Samsung has announced a 74% drop in profit in its mobile division through the last quarter and has decided to slash smartphone output by 30% in 2015. The only outcome of losing business size and cutting production is a loss in jobs, so Samsung's employees are bracing themselves when the company's annual personnel changes happen early in December. Samsung has been taking numerous steps to solve its current crisis, including a $2 billion share buyback this week, the biggest in the company's history. Business Insider says that there is uncertainty among Samsung's workforce of late, with even those at an executive level in line to lose their positions.
Insiders say staff at Samsung Electronics have never been so anxious ahead of the annual reshuffle, as a weak smartphone performance and its worst earnings in three years are expected to cost many jobs [...]Executive positions could be cut by 20% in the coming weeks, and by 30% in the mobile division, including the head of the business.
"Everyone's just looking around to see what happens," said a Samsung employee, adding that major strategic initiatives in his business unit were on hold as managers did not know who would be around to see them through. Only after the personnel moves are official will we all be able to get back to work," he said. "I just hope the fallout won't be huge." source: Business Insider
Luke Jones is the Managing Editor at MobileBurn.com and is the person you need to speak to about the content on the site. Luke studied creative writing at degree level before carving out a reputation as a freelance tech writer. He settled here at MobileBurn, where he reviews devices and contributes to the news, as well as overseeing the site's content and direction.