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Samsung denies mass layoff rumors despite weak earnings

by Jacob Kleinman | September 9, 2015September 9, 2015 9:20 am PDT

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Looks like Samsung won’t be slashing jobs after all. The South Korean giant denied recent reports that it would cut roughly 10,000 jobs at its main offices, though the company is still taking some steps to boost profits.

Speaking to Yonhap News, a high-ranking Samsung official said there wouldn’t be any mass layoffs. “It will only be relocations of workers,” the official said. That could mean moving management and support teams to the divisions where they’re most needed.

Samsung will apparently also institute a salary freeze through the end of the year, cutting off any potential pay raises for 2015. That should help save some money, though what the company really needs is a hit new product. The Galaxy lineup doesn’t seem to be as popular as it once was, even as the firm races to pump out better designs and more powerful hardware.

The South Korean titan recently reported a 37.5 percent drop in operating income for its smartphone business. Samsung’s recent troubles have been blamed on the rise of cheaper handsets in places like China, along with Apple’s continued dominance in the high-end market.

It’s possible the Galaxy Note 5 and Galaxy S6 edge Plus could help boost profits this quarter, though Samsung clearly isn’t taking any chances.

Yonhap News

Jacob Kleinman

Jacob Kleinman has been working as a journalist online and in print since he arrived at Wesleyan University in 2007. After graduating, he took a...

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