Months after reclaiming the World’s largest smartphone maker title, Samsung has, for the first time, cut its workforce. The decrease in the workforce is apparently a side effect of organizational restructuring. As per recent data, the total number of employees of Samsung has dropped by 5.2% in 2016. Apparently, this is the firs time in the last 7-years that the Korean giant has resorted to downsizing.
Specifically speaking, the number of employees in Korea fell by 3.8% while the Global workforce was strongly affected by a fall if 5.8%. The numbers in China also decreased by a staggering 17.5%. On the brighter side, Samsung’s employees in North and South America region has increased by 8.5%.
That being said, Samsung has now recovered from the Note 7 tragedy that shook it last year and is currently doing pretty well with the Galaxy S8. In fact, Samsung Galaxy S8 is touted to have smashed the previous sales records and recorded a 30 percent increase in sales as opposed to its predecessor. Despite the adversities, Samsung is still performing well and the stock prices are perched at an all time high. If the companies official sources are to be believed the downsizing is due to the sale of Samsung’s Printer business to HP which has inadvertently lead to restructuring across several markets.
However, Samsung still has 2,648 corporative business partners worldwide and it has been maintaining 238 major production facilities, 34 research, and 53 distribution centers. Samsung is also prepping its Note 8 and the same is expected to be announced August this year. It would be interesting to see how the consumers will react to the Note 8 and will whether or not the smartphone will be able to compete with likes of the upcoming Pixel 2 and iPhone 8.