Tensions are brewing within the world’s leading electronics manufacturer. Due to poor mobile sales across the globe, Samsung is said to be preparing a wave of job cuts.
It appears that the 74% drop in profit will not be easily weathered.
Hard to do that, actually, unless the outlook is brighter — or some big changes are enforced. And that’s exactly what the Korean giant is about to undertake here. Handing out pink slips is always bad news for a company, and Samsung now has to swallow the bitter pill.
According to this report, the mobile division is proving to be problematic for Samsung, with massive drops registered over the past several quarters.
Sure, the company was still profitable, but the declines have bene massive!
And while Samsung retains leadership of the smartphone market, and probably will continue to do so for the foreseeable future, things could potentially go from bad to worse if some changes are not made, and made immediately.
The company, for example, expects sales to fall another 30% in 2015.
And in order to prepare for it, Samsung has outlined a plan to cut workforce. The company usually trims down in December, but this time around the layoff will simply be more severe than usual.
Some 20% of executive positions are on track to be cut, which translates to 30% of the whole mobile executive divisions. Along with that, several major strategic initiatives have been put on hold until it becomes clear who will be left to oversee them.
More details on this are expected this week.