Samsung could layoff up to 30% workforce in China

Samsung could soon start a broader restructuring in the Chinese market. Given the weak performance, Samsung said it would layoff 8% of its sales team in mainland China. The company could lay off up to 30% of its workforce in China by next year.

In a recent development, Samsung notified employees in mainland China about the layoff of nearly 130 positions (~ 8% of sales staff). The move is coming because Samsung is facing sluggish sales in the world’s largest electronics market.

The South Korean tech giant couldn’t stop laying off just 8% of its workforce. Korean media reports that the initial layoff would mark the start of a broader restructuring initiative, potentially reducing up to 30% of the workforce by 2025.

“The company plans to eliminate redundant positions to better allocate resources and enhance organizational performance,” Samsung’s China unit said.

The company is encouraging employees for voluntary resignations to avoid layoffs. If the reduction of voluntary termination falls short, it could pursue selected layoffs. The workforce reduction would help the firm struggle to retain past glory.

Per reports shared by Samsung, its China workforce peaked at 63,316 employees in 2013, which declined to less than 20,000 in early 2022. The company has also shut down multiple production bases in China over the past several years.