Key Takeaways
- Samsung’s latest foldables, Galaxy Z Fold 6 and Galaxy Z Flip 6, are not selling well, with pre-orders down by more than 10 percent.
- While not a direct result of poor sales, Samsung is looking to cut its overseas job force by as much as 30 percent in some areas.
- Samsung indicates that the job cuts are “routine,” and aim to boost efficiency.
Samsung’s latest and greatest foldables, the Galaxy Z Fold 6 and the Galaxy Z Flip 6, aren’t selling as well as the tech giant might have expected, and that might be forcing Samsung’s hand, with the company reportedly ready to slash jobs.
We know that Apple took the top spot from Samsung in global smartphone shipments for the first time in January, with Huawei subsequently stealing the largest foldable manufacturer title from the South Korean tech giant in May.
Although Samsung’s new foldables are impressive devices, they’re not very different from their predecessors, and potential buyers were quick to notice that. Earlier in July, a report suggested that Samsung only received 910,000 preorders for its new foldables in South Korea during the pre-order window, and credible analyst Ming-Chi Kuo, echoed the same sentiment, suggesting that pre-orders were down 10 percent year-over-year. Global sales figures looked equally abysmal.
While sluggish sales might not be the exact reason why Samsung is cutting jobs, the timing does indicate that sales might have played a role in the decision. According to Reuters, quoting sources familiar with the matter, the tech giant is looking to cut up to 30 percent of its overseas staff in certain divisions.
Job cuts in the US are uncertain
Reuters indicates Samsung’s emphasis on declaring the cuts as “routine,” and aimed at boosting efficiency. However, sources familiar with the matter suggest that the cuts could also be related to the tech giant anticipating a global slowdown in demand for tech products.
The tech giant has reportedly already indicated its subsidiaries around the globe to decrease sales and marketing teams by roughly 15 percent and administrative staff by as much as 30 percent. Production staff are expected to stay put.
The cuts will impact Samsung employees across the Americas, Europe, Asia, and Africa, and they are expected to be implemented by EOY. As of 2023, more than 147,000 Samsung employees were based overseas.
While job cuts in India and China have already been reported. The extent of job cuts in the US and in South Korea, Samsung’s home turf, remain unclear.
