Samsung Laid Off 3 Percent of Employees Due to Sluggish Semiconductor Industry

Samsung Electronics is one of the newest technology companies to cut Off (PHK) (photo: dock. samsung)

JAKARTA - Samsung Electronics is one of the newest technology companies to lay off 3 percent of employees.

The layoffs occurred at its semiconductor subsidiary, Device Solutions Americas (DSA).

According to an internal source, Samsung Electronics DSA notified all employees affected by layoffs due to uncertain economic conditions.

The total number of employees at Samsung DSA is 1.200, of which 3 percent of employees, aka 30 people, have been laid off.

Samsung Electronics DSA's move in reducing its employees is in line with the semiconductor industry as a whole which is experiencing a recession after falling demand due to the sluggish global economy.

Samsung Electronics only recorded USD 204 million, equivalent to IDR 3.1 trillion in operating profit in the semiconductor division in the fourth quarter (Q4) last year.

The figure represents a 96.9 percent decrease from the same period in 2021. In the first quarter of this year, the South Korean semiconductor giant is expected to run a deficit of around USD 1.5 billion, equivalent to IDR 23.1 trillion, as quoted by Business Korea, Tuesday, March 14.

For information, Samsung is not the only one who has laid off employees, other technology companies in the US have also experienced the same thing.

As for Amazon, which has laid off 18.000 employees, Google parent company Alphabet laid off 12.000 employees, Microsoft as many as 20.000 employees and Dell Technology around 6.650 employees have announced restructuring one after another.