According to Korean media Business Korea, Samsung Electronics in the United States semiconductor subsidiary Device Solutions Americas (DSA) also recently conducted layoffs.
According to the report, Samsung Electronics DSA issued a notice to all employees last month, saying that “due to economic instability, it plans to lay off 3 percent of its staff”. DSA’s total workforce is understood to be 1,200, and approximately 30+ employees will be laid off.
Reports indicate that Samsung Electronics has taken layoff measures because the global economic recession has led to reduced demand and the semiconductor industry as a whole has fallen into a slump.
Samsung Electronics semiconductor division reported an operating profit of 270 billion won in the fourth quarter of last year (currently about RMB 1.426 billion), a figure that was 96.9 percent lower than the same period in 2021. In the first quarter of this year, the South Korean semiconductor giant is expected to post a deficit of around 2 trillion won.
For comparison, Intel posted an operating loss of $700 million (about RMB 4.872 billion) on sales of $14 billion (about $97.44 billion) in the fourth quarter of last year, the company’s worst quarterly performance in 50 years. As Intel is expected to continue to run a deficit in the first quarter of 2023, Intel announced thousands of layoffs late last year to cut costs.