Samsung to lay off staff as the smartphone bloodbath worsens

According to a Bloomberg report, Samsung is set to lay off 10% of its headquarters staff “as the world’s biggest smartphone maker loses sales to Apple Inc. and Chinese vendors.”

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Samsung joins the ranks of smartphone makers to lay off staff in order to trim down operations. Before the Korean brand, other brands that have cut staff include: Microsoft, BlackBerry, Lenovo, Amazon, Sony, and HTC. It is a nasty jungle out there. The good thing is that Samsung is being pre-emptive, as the company is still posting profits (though they are decreasing).

As mentioned in my recent article, How Samsung went from exciting to uninspiring, Samsung does need to cut back, as well as innovate differently. Hopefully, the brand can turn things around and return to growing its profits.

Thanks to SirZuma for the tip-off.

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9 comments

  1. We knew it was going to happen eventually. Fortunately Samsung has other interests apart from the smartphone market, but my understanding is that they’re doing a lot of R&D in different areas.

    To many people, Samsung is synonymous with Android – in fact, Samsung IS Android! I figure they will still make sales with the faithful, but others are beginning to notice the competition, dollar for dollar (replace “dollar” with Naira, Cedi, or your local currency)

  2. Is it not interesting that, when all these CEOs trim the workforce, they hardly ever touch their own emoluments? .

    If there is cost cutting, how about the CEO first slashing his own pay and other perks of office , Buhari style, as an exemplary step?

    1. usually before it gets to downsizing, management bonuses would have taken a hit. so it’s not rosy for the top dogs as well

    2. If you were a CEO, you would do the same. Running a company isn’t the same as running a government.

      CEO answers to the Board, not staff. President answers to the People, not politicians.

    1. that hasn’t worked well for any tier one OEM, majority of folks profiting from that model are the “upstart” Chinese OEMs and they have the Great Wall of China to shield them from intellectual property infringement backlash. that’s also why Xiaomi & co aren’t in the smartphone space in North America & the EU. Samsung can’t really afford to follow the model, their R&D costs are probably too high to cover with extra sales on a high volume, low margin model

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