China's Samsung Electronics Layoffs

On the afternoon of January 6, the news that Samsung Electronics will carry out major layoffs in China, the eleven branches and offices of the country will eventually merge into five. Recently, sources have said that Samsung has begun to communicate compensation plans with the retrenes, including compensation and year-end awards, and some employees can also get a Samsung mobile phone.

After the self-ignition of Note7, Samsung also tried to return to the Chinese mobile phone market. In the second half of 2018, Samsung mobile phones accelerated their pace in the Chinese market. At the end of 2018, Quan Guixian, president of Samsung Electronics Greater China, shouted the slogan of returning to the Chinese battlefield. However, after a year, the share of Samsung mobile phones in the Chinese market is still hovering around 1%, and the situation has not improved. In September, Samsung shut down its last mobile phone factory in Huizhou, China.


After the news of the layoffs on the 4th of this month, Samsung Electronics issued a response saying that the move is to promote the relevant business adjustments made in China's competitiveness, in order to promote rapid growth in China's 5G market - although the teaching and The angle is different, but this is tantamount to indirectly recognizing the layoffs.


Samsung's response to the "reduction of staff":


"In response to the uncertainty of the internal and external operating environment and the fiercely competitive market environment, Samsung Electronics has adjusted the related business to promote rapid growth in China's 5G market.


In line with the development needs of the 5G era, Samsung Electronics has adjusted its product line with 5G products as its core, and strengthened its strategic cooperation with leading domestic retail channels to further strengthen Samsung Electronics' mobile business in China.


As part of its normal business activities, this adjustment has enhanced Samsung Electronics' competitiveness in the Chinese market and provided the necessary impetus for the long-term development of the company. In the 5G era, Samsung Electronics will continue to provide better products and services to Chinese consumers. ”


As for the number of layoffs, some media said that nearly 2,000 people, but a source close to Samsung said that although not sure about the specific figures, there will not be as many as 2,000 people.


In the past two days, news of layoff compensation has been released. According to Samsung China held an internal briefing on the afternoon of November 4, and will continue to communicate with the employees before November 8. The layoff compensation includes N+1 compensation, year-end awards and a Samsung mobile phone. Employees can choose Samsung A series and S series according to their working age. The layoffs compensation "combined estimates, layoffs compensation is about the level of N + 3"


Sina Digital asked Samsung related people about this matter and has not received a response.


This layoff is following the localization of the organizational structure in 2017 and the localization of products in 2018. In 2019, Samsung's retail channel localization is the final stage of Samsung Electronics' three major localization strategies.