Tech Desk 
Oct 08, 2024
In the midst of escalating competition in the realm of AI chips from archrivals, Samsung Electronics is reportedly implementing cost-cutting measures owing to its tarnished sales in the market of its flagship products lineup.
During the downsizing spell, the South Korean tech giant in the sphere of smartphones and semiconductors is also reducing its headcount and overlooking lavish events to bring its latest products into the limelight.
As per a Bloomberg report, the company is expected to lay off about 10% of its total overseas staff of 147,000, with the latest wave of layoffs running across its headquarters in Southeast Asia, Australia and New Zealand.
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Having already laid off 10% of its employee base in India and some parts of Latin America, Samsung is likely to further slash headcounts in other beyond-border regions as the overseas staff make up over half its entire headcount of over 267,800.
“Some overseas subsidiaries are conducting routine workforce adjustments to improve operational efficiency,” a Samsung official said. “The company has not set a target number for any particular positions.”
Samsung earnings for third quarter 2024
The development tails the recent announcement from Samsung, wherein it estimated its third-quarter profits prospects far behind market expectations.
According to Reuters, the company also apologised for the dropping earnings as it failed to catch up with its rivals in meeting the rising demand for high-end AI chips from Nvidia and other customers. Market analysts also predicted Samsung's turnover for the third quarter of 2024 to nosedive, with estimated earnings amounting to 10.4 trillion won.
