Samsung is planning to cut 10 percent of its workforce — almost 10,000 people — at its main headquarters in Suwon, South Korea, according to a local newspaper. The cuts come as Samsung’s smartphone sales continue to fall amid increased competition from Apple.
Samsung is said to be targeting workers in the human resources, public relations, and finance departments, according to the Korea Economic Daily, which cites sources who are familiar with the plans. Samsung is also expected to cut some expenses next year.
The changes come as Samsung’s smartphone business is beginning to suffer following years of impressive growth. Despite introducing impressive new hardware like the Galaxy S6 and S6 edge, the company is struggling to compete against Apple’s larger iPhones.
After five straight monthly declines in sales and its share of global smartphone shipments dropping by 3 percent, Samsung’s market value has fallen by more than $40 billion since April.
Chung Chang Won, an analyst at Nomura Holdings Inc. in Seoul, told Bloomberg that Samsung’s decision to make cuts to its workforce is “the easiest way to control costs,” alongside more tightly-controlled spending.
Samsung’s headquarters is home to 98,999 employees, according to a June regulatory filing. The company’s stock rose 1.7 percent to 1,131,000 won in Seoul after news of its cuts was released.