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Samsung Electronics Co., the world’s largest maker of memory chips and smartphones, is poised to implement significant job cuts across its global operations, according to a published on October 1, 2024. The tech giant, grappling with market challenges and a sharp decline in its stock value, aims to streamline operations and improve efficiency through this widespread restructuring.
Samsung to Conduct Layoffs that Can Affect Up to 10% of Worldwide Workforce
The layoffs, which are part of a worldwide reduction plan, are primarily targeting Samsung’s operations in Southeast Asia, Australia, and New Zealand.
According to Bloomberg, approximately 10% of the workforce in these regions could be affected, though the impact may vary by subsidiary. Samsung’s overseas staff, numbering around 147,000 and representing more than half of its total 267,800 employees, are expected to bear the brunt of these cuts. The company has stated it does not plan layoffs in its home market of South Korea.Samsung’s decision comes as the company faces significant challenges in key markets. The tech giant has fallen behind competitors in and has made limited progress in custom-made chip production. These setbacks, coupled with broader market pressures, have contributed to a more than 20% slide in Samsung’s share price since the beginning of 2024.
Samsung Stock is Struggling in 2024
As of September 30, 2024, at 3:30 PM GMT+9, Samsung’s stock was trading at 61,500.00 KRW on the Korean Stock Exchange, down 4.21% for the day. The company’s market capitalization stands at 409.027 trillion KRW, with a of 15.03 and a forward P/E of 7.78.
Despite recent underperformance, with year-to-date and one-year returns lagging behind the KOSPI Composite Index, Samsung has outperformed the index over a five-year period with a 41.87% return.Analyst sentiment remains cautiously optimistic, with recommendations leaning towards “Buy” or “Strong Buy.” However, recent labor issues, , have added to the company’s challenges.More By This Author:Bitcoin’s Uptober Potential: Another Rally In The Cards? Top 3 Discounted Value Stocks Worth Buying NowBoeing Stock Plummets 39% YTD As Strike Enters Third Week
