Samsung Plans Mass Layoffs Despite Soaring Profits

Samsung Electronics and its subsidiaries reported positive financial performance in the first half of this year.

In the first half of 2024, the South Korean technology company achieved revenue of US$108.18 million, a growth of 18% year-on-year (YoY).

Along with that, the profit attributable to the parent entity's owners soared 452% (YoY) to US$12.05 million.

Despite its stellar financial report, rumors have recently circulated that Samsung will conduct mass layoffs.

These rumors were reported by anonymous sources to Reuters.

"Samsung Electronics will cut up to 30% of its overseas staff across several divisions, according to three sources with direct knowledge of the matter," said Reuters journalists Seunggyu Lim and Aditya Kalra in their report released last week (September 12, 2024).

"The South Korea-based Samsung has instructed its subsidiaries worldwide to reduce sales and marketing staff by 15% and administrative staff by 30%, according to two sources," they continued.

According to information gathered by Reuters, Samsung will conduct layoffs at the end of this year affecting employees across America, Europe, Asia, and Africa.

However, Reuters stated that there is no detailed information yet regarding the number of employees and which divisions will be affected by the dismissals.