Samsung Group has decided to restructure its workforce towards streamlining the company and reducing costs. The layoffs will equal 4.3 percent of its 222,011 workers, or 9,515 workers.
Samsung said it has made an effort to continuously reduce its workforce in countries where production bases are located. Five Samsung-affiliated companies (Samsung Heavy Industries, Samsung SDI, Samsung Engineering, Samsung Construction & Trading and Samsung Electro-Mechanics) have carried out voluntary early retirement programs to reduce their work forces.
Samsung Heavy Industries has reduced its workforce by 12.8 percent (1,795 people) this year. Samsung Electronics, the largest share of revenue for Samsung Group, does not have a voluntary early retirement program yet, but is expected to reduce up to 30 percent of its labor force as it cuts back on those who work in finance, human resources and marketing. Samsung Group will announce its restructuring plans for manager-level workers and executives next year. Samsung Group expects to replace some manager-level workers and executives with younger workers through these restructuring plans.