Samsung is not dependent on a single business, but it is present in different businesses, from mobile chips to displays and other electronic items. Being an established player, it has successfully innovated several new things in the market.
After the Android device market, Samsung also dominates the semiconductor industry, and by this industry, Samsung makes big profits. But as we reported earlier, due to the economic recession, this industry hits the most. The company has faced very heavy losses, and now the effect can be seen.
According to Business Korea, Samsung is now planning to restructure the staff of its US subsidiary. The reports mansion that the company is planning to cut three percent of staff from the total employees
As per the information, this will affect 30 employees as the total staff size is around 1200 people. The main reason behind this unusual reduction of personnel is the overall effect of the recession, which is heavily hit the semiconductor industry.
The report further mentions Samsung earned 270 billion won in operating profit in the quarter of last year, which is almost a 97 percent drop as compared to the same period of 2021. While in the first quarter of this year, the Korean semiconductor giant is expected to post a deficit of around 2 trillion won.
The US-based semiconductor company reports sales of 18.2 trillion won, which is around US $14 billion, and made a loss of US $700 million in the fourth quarter of last year. It was one of the worst quarter loss which is reported by Samsung in the last 50 years. As of now, the deficit is expected to continue, and as we mentioned, the first quarter of this year (expected), so the company has to take the hard steps and to do cost-cutting by firing thousands of employees at the end of last year.
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