December 07, 2018 10:47
Samsung Electronics promoted 158 executives on Thursday, but the number was down almost 30 percent compared to last year.
Samsung has laid off up to 10 percent of top management to prepare for lean times like a downturn in the semiconductor business and weak smartphone sales. The total number of executives at the electronics giant could fall below 1,000 for the first time since 2010.
In 2015, Samsung also laid off around 10 percent of its 1,212 executives due to a lackluster performance in the smartphone division.
Half the promotions took place in the semiconductor division, which achieved record earnings this year. But Samsung apparently laid off senior managers in the smartphone and home appliance divisions, which performed poorly.
Samsung's smartphone market share in China fell to less than one percent this year, while profitability has deteriorated sharply requiring a major organizational reshuffle that will be announced soon.
One source said Samsung "views the current situation as a serious crisis and plans to streamline its organizational structure by laying off executives in supporting divisions."
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