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A report from Korea Economic Daily claims that Samsung is preparing to cut down 10 percent of its workforce due to its dwindling market share and profit margins.
The company will mainly be removing employees from its human resources, public relations, and finance departments from its headquarter in Korea. The Korean company is also planning on cutting down its expenses for next year to better brace itself for the slowdown in its smartphone sales.
Since April, when Samsung’s flagship Galaxy S6 and S6 edge was launched to consumers, the company has lost more than 40 billion in market value. It has also lost more than 3 percent of the global smartphone market and its profits have been declining consecutively for the last five quarters.
Apple has been facing stiff competition from Chinese OEMs like Huawei and Xiaomi in the low-end, while Apple has been eating into its high-end market share. Despite coming out with impressive handsets like the Galaxy S6 edge, Samsung has been unable to retain its market share in the competitive smartphone market — where once it was the king.
[Via Bloomberg]
