In the face of losses and struggling sales, South Korean giant Samsung is expected to cut its workforce by 10pc while halving its expenses for 2016.
Many of the Samsung job cuts are expected to come down heavily on its non-technical roles, including its human resources, finance and administration staff.
Based off the figures that Samsung gave of its total employee count last April, 10pc would equate to nearly 32,000 staff being marked for the cut.
Until now, the company had been growing exponentially in terms of the numbers of employees it had, with this year’s figure of 319,000 worldwide being an increase from 286,000 in 2013 and 161,700 in 2008.
According to The Korea Economic Daily, the majority of job cuts will be offered to staff, rather than offering voluntary redundancy, with the aim of getting them jobs with other companies.
Equally, if not more, worrying for the company’s future are the details emerging from sources within the company that it is to cut its 2016 expenditure by as much as 50pc.
Last July, the company posted its Q2 financial results, which appeared to show that, despite the launch of its Samsung Galaxy S6 flagship phone, its sales remained relatively low.
As a result, the company posted its seventh consecutive profit decline, falling from 6.25trn won in 2014 to 5.75trn won this year, marking an 8pc decrease.
To make these 50pc expenses cuts, Samsung has already saved 1.8 trillion won by simply not spending the money on selling and administrative expenses.
09/09/2015 11:38: A high-ranking Samsung official has denied that its workforce is to be cut by 10pc, rather it will freeze all of its employees salaries for 2015, making it the first time it has done so in six years.
Samsung sign image via Shutterstock